India’s PLI schemes drive Atmanirbhar Bharat imaginative and prescient with Rs 1.97 lakh crore increase, ETCFO
In a stride in direction of attaining self-reliance below the ‘Atmanirbhar Bharat’ imaginative and prescient, India’s Product-Linked Incentive (PLI) schemes have emerged as a transformative power in enhancing the nation’s manufacturing and export capabilities with an outlay of Rs1.97 lakh crore (over US$26 billion).
In response to the Ministry of Commerce and Trade, the initiative, launched in November 2020, covers 14 key sectors and has already delivered milestones. This system has catalyzed investments price Rs1.46 lakh crore (USD 17.5 billion), spurred manufacturing and gross sales of Rs12.50 lakh crore (US$150 billion), and boosted exports to Rs4 lakh crore (USD 48 billion).
Moreover, it has created direct and oblique employment for 9.5 lakh people. As of FY 2023-24, Rs9,721 crore in incentives have been disbursed, reflecting the scheme’s tangible affect.
The PLI scheme has considerably expanded India’s manufacturing footprint, spanning 14 very important sectors equivalent to Cell Manufacturing, Prescription drugs, Vehicles, Specialty Metal, Telecom, and Superior Chemistry Cell (ACC) Batteries.
Over 1,300 manufacturing models have been established throughout 27 states and union territories below the oversight of 10 Ministries and Departments. This widespread decentralization has fueled industrial development in numerous areas, making it a nationwide success.
A noteworthy facet of the PLI scheme is its cascading impact on the Micro, Small, and Medium Enterprises (MSME) ecosystem.
The institution of anchor models in numerous sectors has created a requirement for a strong provider base, with many ancillary manufacturing models being developed within the MSME sector. This linkage is anticipated to fortify the complete worth chain and increase MSME development.
The PLI scheme for White Items (air conditioners and LED lights) stands out as a key success story. With an authorised outlay of Rs6,238 crore for FY 2021-22 to FY 2028-29, the initiative has already achieved 47% of its dedicated funding goal of Rs6,962 crore and generated 100% of the envisaged direct employment, using 48,000 people as of September 2024.
The home worth addition on this sector is projected to rise considerably from 20-25% to 75-80% by the scheme’s conclusion. Inspired by the strong trade response, the third spherical of functions for this section attracted 38 new candidates with potential investments of Rs4,121 crore.
The 14 focus sectors below the PLI scheme embody Cell Manufacturing and Digital Elements, Prescription drugs and Medical Gadgets, Vehicles and Auto Elements, Superior Chemistry Cell Batteries, Excessive-Effectivity Photo voltaic PV Modules, and Drones and Drone Elements, amongst others.
