New Delhi, As the Union Cabinet on Wednesday approved a production-linked incentive scheme worth around Rs 1.45 lakh crore for 10 sectors, India Inc has lauded the government's latest push for manufacturing in the country.

Assocham Secretary General, Deepak Sood described the move as a boost to India's march towards becoming a "global manufacturing hub".

"This would have a huge multiplier effect on economic activities, with a sizable generation of employment across different sectors such as automobiles, electronics, textiles, food products, and telecom. In sectors like pharmaceuticals, chemicals, solar equipment, the PLI would also give a big leap towards scientific research and development," he said.

S.P. Kochhar, Director General of the Cellular Operators Association of India (COAI), said that extension of the PLI scheme to the telecom sector shows the government's resolve to foster inclusive growth in the industry by making it faster, easier and more competitive to conduct business.

"We are yet to receive details of the scheme from the DoT, however, we appreciate the proposed outlay of Rs 12,000 crore for telecom and networking equipment and are confident that the government would have designed the scheme is such a manner to ensure that the demand for telecom equipment from the local market is enhanced and remains robust as well as exports from India are suitably supported and incentivised," he said.

The Apparel Export Promotion Council (AEPC) noted that the decision to offer production linked incentives to several sectors saying the scheme will give a big boost to exports, investments, domestic capacity and employment.

AEPC Chairman A. Sakthivel said: "It will increase investment in the economy, boost exports and create additional employment. This is a much-needed step as it will further fuel the V-shaped recovery that has begun in many sectors including the apparel sector."

FICCI President Sangita Reddy observed that the sectors covered under the PLI scheme are strategic, technology intensive and also important from the perspective of employment generation in the country.

"Indian economy offers huge opportunity for these sectors not just from the domestic market perspective but also to make India an export hub for these products," she said.

Post the cabinet approval to the scheme, Union Commerce and Industry Piyush Goyal invited global investors to invest in India, taking benefit of the huge domestic market, and conducive business environment in the country.

In his keynote address at the conference -- 'India: Drivers of Change' -- organised by the Bank of America, he said that the country offers fair value for their investments.