Synopsis
The Centre allocated Rs 1,600 crore under the PLI scheme in H1 2024-25, with electronics receiving Rs 964 crore. The scheme enhances manufacturing capabilities and aims for self-reliance in India.Key Takeaways
- Centre disbursed Rs 1,600 crore under PLI scheme.
- Electronics sector received Rs 964 crore.
- Electronic exports rose by 27.4% to $22.5 billion.
- 764 PLI applications approved across 14 sectors.
- Scheme aims to boost self-reliance in manufacturing.
New Delhi, Jan 22 (NationPress) The Centre allocated nearly Rs 1,600 crore under the Production-Linked Incentive (PLI) scheme during the initial half of 2024-25, with the extensive electronics manufacturing sector receiving the largest portion of Rs 964 crore, as confirmed by a senior official on Wednesday.
Following electronics, the pharmaceuticals sector was granted Rs 604 crore. Other sectors benefiting from this initiative include food products, telecommunications, and drones.
Electronics goods have rapidly become the fastest-growing segment in India’s export portfolio as new manufacturing facilities have emerged in the country, propelled by the success of the Centre’s PLI scheme.
India’s electronic exports surged by an impressive 27.4 percent to $22.5 billion from $17.66 billion during the April-November period of 2024-25, compared to the same timeframe in 2023-24.
Electronic goods have ascended to the third place among the top contributors to India’s export sector, now ranking just behind engineering products and petroleum, up from sixth position last year.
Additionally, in January, the government sanctioned a Rs 246 crore incentive under the PLI scheme to Mahindra & Mahindra and Tata Motors for increased production in the automobile and auto components sector.
By September 2024, the PLI scheme for the automobile and auto components sector had facilitated Rs 20,715 crore in investments and Rs 10,472 crore in incremental sales.
Launched with a budgetary provision of Rs 25,938 crore, this scheme aims to bolster India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products, mitigate cost challenges, and establish a robust supply chain.
Key characteristics include a minimum of 50 percent domestic value addition and eligibility for both domestic and export sales.
The PLI scheme has successfully attracted investments totaling Rs 1.46 lakh crore within the manufacturing sector, generating over 9.5 lakh jobs, as per official data.
To date, 764 applications have been approved under the PLI schemes spanning 14 sectors. As of August 2024, these schemes have realized investments of Rs 1.46 lakh crore, leading to incremental production and sales exceeding Rs 12.50 lakh crore, job creation of over 9.5 lakh, and exports surpassing Rs 4 lakh crore.
Incentives of Rs 2,968 crore in eight sectors and Rs 6,753 crore in nine sectors were disbursed under the scheme during the fiscal years 2022-23 and 2023-24, respectively, according to information presented in Parliament.
This initiative was introduced with the vision of making India self-reliant. The PLI schemes have been unveiled for 14 crucial sectors with a total outlay of Rs 1.97 lakh crore aimed at improving manufacturing capabilities and boosting exports.