How Can the PLI Scheme Enhance Export Competitiveness in Key Sectors?
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Synopsis
In a recent meeting, Commerce Minister Piyush Goyal called for India to leverage its competitive advantages in key sectors through the PLI scheme. The focus is on building skilled manpower and addressing infrastructure challenges to boost exports and domestic manufacturing.
Key Takeaways
- India must focus on sectors with competitive advantages.
- The PLI scheme has attracted significant investments.
- Self-reliance is essential for key sectors.
- Job creation is a key benefit of the PLI scheme.
- The pharmaceutical sector has greatly benefited from this initiative.
New Delhi, June 25 (NationPress) India must prioritize sectors where it holds a competitive advantage over other nations and tackle the challenges faced by various stakeholders to facilitate further growth in the country's exports, asserted Commerce Minister Piyush Goyal on Wednesday.
During a review meeting concerning the Production-Linked Incentive (PLI) scheme across multiple sectors, Goyal emphasized the necessity of achieving self-reliance in pivotal areas included in the PLI initiative.
He highlighted that ministries should aim to develop high-quality skilled workforce rather than merely increasing numbers and work towards resolving infrastructure bottlenecks in partnership with the National Industrial Corridor Development Programme (NICDC). Goyal also urged for the creation of a strategic plan for the upcoming five years, focusing on both investments and fund disbursements.
The PLI initiative is currently being implemented in 14 crucial sectors, attracting investments of ₹1.76 lakh crore, which has led to a production/sales value exceeding ₹16.5 lakh crore and the creation of over 12 lakh jobs (both direct and indirect) by March 2025.
As per government data, a total incentive amount of ₹21,534 crore has already been distributed under PLI schemes for 12 sectors, including Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, White Goods, Automobiles & Auto components, Specialty Steel, Textiles, and Drones & Drone Components.
The influence of PLI schemes has been considerable across diverse sectors in India. These initiatives have encouraged domestic manufacturing, resulting in increased production, job creation, and enhanced exports.
For instance, the pharmaceutical sector has recorded cumulative sales of ₹2.66 lakh crore, which includes exports of ₹1.70 lakh crore achieved in the initial three years of the scheme.
Export sales of eligible products under the scheme for FY 2024-25 reached ₹0.67 lakh crore, roughly 27 percent of total pharmaceutical exports for the country during the same timeframe, according to data from the Commerce Ministry.
Approximately 40 percent of total investments (₹37,306 crore), equivalent to ₹15,102 crore, have been committed by approved companies towards Research & Development (R&D) for eligible products under the scheme.
The PLI Scheme for Bulk Drugs has enabled India to transition from being a net importer of bulk drugs (₹1,930 crore in FY 2021-22) to becoming a net exporter (₹2,280 crore).
The Food Products scheme has attracted investments of ₹9,032 crore, resulting in a production/sales figure of ₹3,80,350 crore and generating employment for 3,40,116 individuals (direct and indirect).
Additionally, exports of Indian Man-made Fibre (MMF) textiles have surged to $6 billion during FY 2024-25, compared to $5.7 billion during FY 2023-24.
The total exports of Technical Textiles from India reached $3,356.5 million during FY 2024-25, up from $2,986.6 million in FY 2023-24.
Point of View
It's vital for India to continue leveraging its competitive advantages while addressing stakeholder challenges. The PLI scheme represents a significant step towards achieving self-reliance and enhancing exports, which is essential for the nation's economic growth and prosperity.
NationPress
25/06/2025
Frequently Asked Questions
What is the PLI scheme?
The PLI scheme is a government initiative aimed at boosting domestic manufacturing and enhancing exports by providing incentives to various sectors.
How much investment has the PLI scheme attracted?
The PLI scheme has attracted investments worth ₹1.76 lakh crore across 14 key sectors.
What sectors are covered under the PLI scheme?
The PLI scheme covers sectors such as electronics, pharmaceuticals, textiles, and food processing, among others.
What has been the impact of the PLI scheme on job creation?
The PLI scheme has generated over 12 lakh jobs, both direct and indirect, by March 2025.
How has the pharmaceutical sector benefited from the PLI scheme?
The pharmaceutical sector has seen cumulative sales of ₹2.66 lakh crore, including ₹1.70 lakh crore in exports, thanks to the PLI scheme.
