The production-linked incentive (PLI) schemes introduced by the Indian government have emerged as a key driver for attracting investments and boosting manufacturing across various sectors. As of September this year, these initiatives have garnered an impressive Rs 95,000 crore in investment, marking a significant stride towards enhancing India’s manufacturing capabilities and exports.
Budgetary Commitment and Sectoral Focus
- In the Union Budget 2021-22, the government allocated a substantial outlay of Rs 1.97 lakh crore for the PLI schemes, underscoring their strategic importance in fostering economic growth.
- These schemes cover 14 sectors, including electronics, telecommunication, pharmaceuticals, white goods (AC and LED light components), and textiles, with the overarching goal of fortifying India’s position in global manufacturing and trade.
Robust Application Approval and Geographical Impact
- The Commerce and Industry Ministry reports the approval of 746 applications under these schemes until November 2023.
- Notably, PLI units have been established in more than 150 districts across 24 states, showcasing a widespread geographical impact. This decentralized approach contributes to equitable economic development and job creation.
Impressive Investment and Economic Impact
- The approved applications have resulted in a staggering Rs 95,000 crore in investments, leading to the production and sales of goods amounting to Rs 7.80 lakh crore.
- The direct and indirect employment generated surpasses 6.4 lakh, highlighting the schemes’ pivotal role in fostering job opportunities across the nation.
Incentive Disbursement and Achievements in 2022-23
- In the fiscal year 2022-23, the government disbursed incentives totaling around Rs 2,900 crore, further incentivizing businesses to participate actively in these schemes.
- Moreover, within a span of three years, there has been a commendable 20% value addition in mobile manufacturing, showcasing the positive impact on the electronics sector.
Milestones in Electronics and Telecommunication
- Of the total electronics production worth USD 101 billion in 2022-23, smartphones constituted USD 44 billion, with USD 11.1 billion attributed to exports.
- Notably, the telecom sector has achieved a remarkable 60% import substitution, rendering India almost self-reliant in critical components such as Antennae, GPON, and CPE.
Transformations in Pharma Sector
- The PLI schemes have also contributed to reducing imports of raw materials in the pharmaceutical sector.
- India now manufactures unique intermediate materials and bulk drugs, including significant achievements in areas like Penicillin-G.
- Additionally, there has been a successful transfer of technology in the production of medical devices such as CT scans and MRIs.
White Goods Sector Gains Traction
- In the white goods sector, focusing on AC and LED light components, 64 companies have been selected under the PLI scheme.
- Thirty-four of these companies are set to invest Rs 5,429 crore in air conditioner components, while 30 companies will invest Rs 1,337 crore in LED component manufacturing.
- The envisioned additional investments of Rs 6,766 crore are expected to create about 48,000 direct employment opportunities, with 13 foreign companies contributing Rs 2,090 crore to the scheme.
Summary
- Investment Inflow: PLI schemes draw Rs 95,000 crore in investments, boosting economic prospects.
- Sectoral Focus: 746 approved applications span 14 sectors, emphasizing diverse industrial growth.
- Geographical Impact: PLI units established in 150+ districts across 24 states for widespread development.
- Economic Impact: Investments result in Rs 7.80 lakh crore production and 6.4 lakh jobs.
- Sectoral Achievements: Electronics, telecom, pharma, and white goods show substantial growth and self-reliance.