PLI Schemes

India’s manufacturing sector is undergoing a significant transformation, powered by progressive policies designed to reshape its global positioning. One of the prominent reasons is the Production Linked Incentive (PLI) Scheme, a key initiative of the government aimed at establishing India as a prominent global manufacturing hub. The scheme seeks to foster innovation, enhance productivity, and boost the competitiveness of critical industries.

As of August 2024, the PLI Scheme has yielded impressive outcomes in investment, production, and job creation across 14 sectors. Investments worth Rs 1.46 lakh crore have been realized, resulting in incremental production/sales exceeding Rs 12.50 lakh crore, the creation of over 9.5 lakh jobs, and exports surpassing Rs 4 lakh crore. Key contributors include sectors such as electronics, pharmaceuticals, and food processing. Additionally, incentives totaling Rs 2,968 crore across 8 sectors in FY 2022-23 and Rs 6,753 crore across 9 sectors in FY 2023-24 were disbursed under this initiative.

Launched in 2020, the PLI Scheme represents a strategic push toward self-reliance, aligning with the vision of Atmanirbhar Bharat and the broader Make in India initiative. It aims to fortify India’s manufacturing base, reduce import dependency, and promote sustainable growth. With an outlay of Rs 1.97 lakh crore for 14 critical sectors, the scheme is designed to enhance manufacturing capabilities and exports. These sectors include mobile manufacturing, pharmaceuticals, specialty steel, food products, textiles, solar PV modules, and advanced battery technology, among others.

Over the next five years, the PLI Schemes are expected to significantly increase production, drive manufacturing activities, and contribute to economic growth. To date, 764 applications across 14 sectors have been approved under the scheme. Among these, the food products sector leads with 182 approvals, followed by automobiles and auto components with 95 approvals. Other notable sectors include textiles (74 approvals), specialty steel (67 approvals), and white goods (66 approvals). Emerging industries such as drones, advanced batteries, and solar PV modules have also received approval, highlighting the scheme’s focus on future-ready sectors and its holistic approach to bolstering India’s global manufacturing presence.

In summary, the PLI Scheme is set to generate a ripple effect within India’s MSME ecosystem by encouraging the establishment of ancillary units along value chains. By aligning with the nation’s vision for self-reliance, this initiative is not only fostering industrial growth but also paving the way for India’s emergence as a global leader in manufacturing.


Print pagePDF pageEmail page