The government has already rolled out the scheme with an outlay of about Rs 2 trillion for as many as 14 sectors. The government is considering a production linked incentive (PLI) scheme for certain types of furniture to boost domestic manufacturing, and exports and create jobs in the sector, an official said.
A Production Linked Incentive (PLI) scheme is being considered by the government for certain types of furniture to ramp up domestic manufacturing, exports, and job creation in the sector, as per government officials.
The objective of the scheme is to make domestic manufacturing globally competitive and to create global champions in manufacturing. Discussions are on for the PLI scheme for moulded furniture and toys, the official said. The toy industry has demanded an extension of the scheme for the sector as it would promote local manufacturing and create jobs. Manu Gupta, promoter of Playgro Toys India, said the government's initiatives are helping the industry, but a National Toy Policy and Production Linked Incentive scheme would further support the growth of the sector.
The scheme was already rolled out by the government with an outlay of about Rs 2 lakh crore for around 14 sectors. The scheme aims to make domestic manufacturing globally competitive and for the creation of manufacturing global champions. Additionally, an extension of the scheme has also been requested by the industry of toy for the promotion of local manufacturing and job-creation. Estimates suggest that the export of furniture is at about USD 400 million per year. The global furniture exports have a current standing of USD 264 billion.
Talking about the furniture sector, Trade Promotion Council of India Chairman Mohit Singla said there is already established competitiveness in the moulded furniture sector, and the PLI scheme would be a thoughtful step in that direction. "Like we have industrial parks for the pharma sector, a similar move to develop a furniture cluster will give a fillip to the sector," Singla said.
As per estimates, furniture export, at present, is about USD 400 million per year. Global furniture exports currently stand at USD 264 billion and half of the market share is dominated by five countries - China, Germany, Poland, Italy and Vietnam.
