December 27, 2023
In the 2021-22 Union Budget, the government allocated INR 1.97 trillion for the Production Linked Incentive (PLI) schemes spanning 14 sectors
Sectors include electronics, telecommunication, pharmaceuticals, white goods (including AC and LED light components), and textiles
The sanctioning of applications has led to the establishment of PLI units across more than 150 districts in 24 states
In the electronics sector, out of the total production worth US$ 101 billion in 2022-23, smartphones accounted for US$ 44 billion
As of September this year, the Production-Linked Incentive (PLI) initiatives for 14 sectors have attracted investments exceeding INR 95,000 crore, according to a recent announcement from the Ministry of Commerce.
In the 2021-22 Union Budget, the government allocated INR 1.97 trillion for these schemes, targeting sectors such as electronics, telecommunication, pharmaceuticals, white goods (including AC and LED light components), and textiles. The primary objective is to bolster India’s manufacturing capabilities and boost exports.
The ministry disclosed that, by November 2023, 746 applications had been sanctioned, leading to the establishment of PLI units across more than 150 districts in 24 states. The cumulative investment reached over INR 95,000 crore by September, resulting in production and sales amounting to INR 7.80 trillion. This initiative has generated direct and indirect employment for over 6.4 lakh individuals.
Furthermore, the ministry disbursed incentives totalling approximately INR 2,900 crore in the fiscal year 2022-23. Notably, there has been a 20% value addition in mobile manufacturing within three years.
In the electronics sector, out of the total production worth US$ 101 billion in 2022-23, smartphones accounted for US$ 44 billion, including exports amounting to US$ 11.1 billion. The telecom sector achieved a 60% reduction in imports, making India almost self-reliant in producing antennas, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment).
Moreover, the pharmaceutical sector experienced a significant decrease in raw material imports, with India now manufacturing unique intermediate materials and bulk drugs, including Penicillin-G. Technology transfer has also occurred in manufacturing medical devices such as CT scans and MRIs.
Concerning PLI in white goods (AC and LED light components), 64 companies were selected under the scheme. Of these, 34 companies plan to invest INR 5,429 crore in air conditioner components, while 30 companies are set to invest INR 1,337 crore in LED component manufacturing. Additional investments of INR 6,766 crore are anticipated, creating approximately 48,000 direct employment opportunities. Thirteen foreign companies are contributing INR 2,090 crore under the PLI scheme.
Source:Economic Times