Govt resolution to restrict PLI scheme alerts manufacturing setback: Cong

The Indian authorities’s current resolution to discontinue the $23 billion Manufacturing-Linked Incentive (PLI) scheme past the preliminary 14 sectors has sparked widespread concern over the way forward for the nation’s manufacturing ambitions.

The announcement has raised questions on India’s capability to cut back dependence on China and increase manufacturing’s share of GDP to 25 per cent.

In accordance with Congress spokesperson Pawan Khera, who shared the data on X, the PLI scheme, initially aimed toward reworking India into a world manufacturing powerhouse, has failed to satisfy its targets. Opposite to expectations, the manufacturing sector’s share of GDP has declined from 15.4 per cent to 14.3 per cent as an alternative of accelerating.

As of October 2024, corporations underneath the PLI scheme produced items price solely $151.93 billion — merely 37 per cent of the goal. Of the entire allotted funds, solely $1.73 billion, or 8 per cent, have been disbursed. A number of corporations didn’t start manufacturing, whereas others confronted vital delays in receiving subsidies.

Sectors similar to metal, textiles, and photo voltaic panels have notably struggled to satisfy expectations, hindered by fierce competitors and non-compliance with funding norms.