The Indian government has released Rs 2,874.71 crore to the beneficiaries of the Production-Linked Incentive (PLI) scheme until March 2022. The majority of the companies receiving these benefits were from eight sectors, including electronics, telecom, pharma, and food processing, among others. The scheme was launched in 2020 to boost domestic manufacturing and exports and had an outlay of Rs 1.97 lakh crore. As of December 2022, 717 applications were approved in 14 sectors with expected investments of Rs 2.74 lakh crore. The actual investment of Rs 53,500 crore has resulted in incremental production/sales of over Rs 5 lakh crore and employment generation of over 3 lakhs.
Out of the eight sectors receiving benefits, a majority of the incentive claims of over Rs 3,420.05 crore have been received for large-scale electronics manufacturing, electronics and technology products, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food items, and drones. Of this, over Rs 2,800 crore has already been disbursed, and the remaining amount will be distributed soon.
Additional Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajeev Singh Thakur stated that while these eight sectors are doing well, a few need to increase their pace. He further added that the next two-three years will be crucial, and they hope that things will move with a fast pace.
The PLI scheme has been extended to other sectors as well, such as white goods, specialty steel, advanced chemistry cells, auto components, and textiles. However, when asked about including more sectors under the scheme, Thakur stated that demands are coming from different industries, but no decision has been taken yet.
The highest amount of Rs 1,649 crore was disbursed in the electronics sector, followed by pharma (Rs 652 crore), food products (Rs 486 crore), telecom (Rs 35 crore), drones (Rs 30 crore), medical devices (12.8 crore), electronics (Rs 5.3 crore), and bulk drugs (Rs 4.34 crore).
The PLI scheme has been successful in promoting domestic manufacturing, boosting exports, and creating employment opportunities. The government's efforts to promote domestic manufacturing through such schemes are expected to further contribute to India's economic growth.
