- By Aditya Pratap Singh
- Wed, 19 Aug 2026 12:01 PM (IST)
- Source:JND
- New policy targets chemicals, textiles, solar, telecom
- Special incentives for foreign companies to invest in India.
Considering the robust results of the Production Linked Incentives (PLI) scheme for more than a dozen sectors, the government may now introduce a special policy to boost manufacturing and exports in four sectors, including chemicals, textiles, PV solar, and telecom network equipment. NITI Aayog selected these four sectors based on the potential benefits of their products at the global stage.
After studying the measures taken by countries like China and Vietnam to increase production of these items, the Commission has made several recommendations to the government, according to a Jagran.com report.
What May Be Eased
The measures under consideration include changes in customs duties on manufacturing raw materials and freight subsidies. Additionally, low-rate loans, promotion of local production, and tax exemptions for a specific period may come under the scheme.
FTAs Countries Are In Focus
The report suggests that NITI Aayog emphasised developing products targeting the markets of countries with which India has or is about to enter into trade agreements.
As per sources cited by Jagran, the Department for Promotion of Industry and Internal Trade (DPIIT) is drafting NITI Aayog's recommendation along with the sector-related ministries.
Special Concessions For Foreign Companies
The NITI Aayog also recommended that companies operating in the four sectors under consideration, hailing from developed countries and other countries, could be granted special incentives to invest in India. The government may draft a policy to enable them to enter into joint ventures with Indian companies.
India Reads China's Model
Citing the example of China, the Aayog explained that in the 1990s, the Asian country had no facility for manufacturing stored program controlled devices (SPCs). The Chinese government then encouraged and facilitated companies in China to partner with other companies to produce in partnership with them.
India's Export Surge
The Commission stated that China's share in the export market is declining, while India's is on a gaining path. However, China provides subsidies to its manufacturing units on various inputs, such as labour, electricity, and machinery, while India does not. In China, telecom network units receive a two per cent subsidy on labor costs and a one per cent subsidy on electricity costs.