Industry Commends Government's Rs 14,020 Crore Incentive Under PLI Scheme
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Synopsis
On March 24, the industry commended the government's initiative to bolster India's manufacturing sector through the allocation of Rs 14,020 crore under the PLI scheme. This move is projected to generate sales of Rs 14 lakh crore and significantly enhance job creation and exports across various sectors.
Key Takeaways
- Government allocates Rs 14,020 crore under PLI scheme.
- Targets include 10 sectors such as electronics and pharmaceuticals.
- Investment attracted amounts to Rs 1.6 lakh crore.
- Over 764 applications approved, benefiting 176 MSMEs.
- Exports under PLI surpass Rs 5.31 lakh crore.
New Delhi, March 24 (NationPress) The industry expressed its appreciation on Monday for the government's determination to enhance India's manufacturing sector through the allocation of Rs 14,020 crore under the production-linked incentive (PLI) scheme, which spans various sectors and is projected to generate sales of Rs 14 lakh crore.
The Centre has allocated incentives amounting to Rs 14,020 crore as part of its PLI initiatives aimed at promoting manufacturing across 10 sectors, including large-scale electronics, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom products, food processing, white goods, automobiles, and drones, as detailed by the Ministry of Commerce and Industry.
These PLI schemes, designed in alignment with India's goal of becoming ‘Atmanirbhar’ in 14 crucial sectors, have successfully attracted an impressive Rs 1.6 lakh crore in investments.
“This initiative marks a significant move towards job creation, the growth of India's manufacturing ecosystem, and exports, particularly in electronics and semiconductors. We foresee an acceleration in the Electronics System Design and Manufacturing (ESDM) sector, promoting innovation, resilience in supply chains, and establishing India as a global leader in high-value electronics production,” stated Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
The ongoing momentum, combined with the forthcoming Semicon India Programme V2.0 and the PLI scheme for electronic components, is expected to implement a focused strategy to achieve a $500 billion electronics market and satisfy the anticipated $103 billion semiconductor demand with considerable value addition, he noted.
These initiatives have stimulated domestic manufacturing, resulting in increased production, job creation, and a rise in exports. They have also drawn substantial investments from both local and international players.
As of now, 764 applications have been approved under PLI schemes for 14 key sectors, including 176 MSMEs benefiting in areas such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles, and Drones, according to an official statement.
Reported actual investment stands at approximately Rs 1.61 lakh crore ($18.72 billion) as of November 2024, which has led to production worth around Rs 14 lakh crore (about $162.84 billion) against the target of 15.52 lakh crore by FY 2024-25 and the creation of over 11.5 lakh jobs (both direct and indirect).
PLI schemes have revolutionized India’s exports, transitioning from traditional commodities to high-value products like electronics and telecommunications equipment, processed food items, and more. Exports under PLI schemes have exceeded Rs 5.31 lakh crore (approximately $61.76 billion), with notable contributions from sectors such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom and Networking products.
Individual approvals have occurred over time through a transparent system. Projects are executed over a duration of 2 to 3 years, depending on the manufacturing type, with claims usually filed after the first year of production. Consequently, most projects are currently in the implementation phase and will submit incentive claims in due course.
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