December 5, 2024
The mobile phones, food processing, and pharmaceuticals sectors account for over 75% of the jobs created so far
The food processing PLI scheme has nearly met its target, generating 2.45 lakh of the 2.5 lakh jobs planned by 2026-27
Launched in April 2020, the scheme incentivises domestic manufacturing with financial benefits tied to production and investment milestones
Initially targeting electronics, the scheme now spans 14 sectors, including textiles, pharmaceuticals, automotive, and renewable energy
India’s production-linked incentive (PLI) scheme has created 5.84 lakh direct jobs as of June 2024, accounting for 36% of the total employment target of 16.2 lakh jobs over five years, according to an Indian Express report based on RTI responses from various ministries. The initiative, spanning 14 sectors, aims to strengthen India’s domestic manufacturing capabilities and reduce import dependency.
Strong performers under the scheme include the mobile phone, food processing, and pharmaceutical sectors, collectively accounting for over 75% of the jobs generated. The food processing sector, in particular, has nearly achieved its goal, creating 2.45 lakh jobs against a target of 2.5 lakh by 2026-27.
The PLI scheme, introduced in April 2020, provides financial incentives of 4-6% of incremental sales to eligible companies that meet defined production and investment benchmarks. Originally launched to bolster the electronics sector, it has since expanded to cover textiles, automotive, renewable energy, and pharmaceutical industries.
Designed to attract investment, the scheme also aims to boost exports and generate employment, aligning with India’s broader strategy to establish itself as a global manufacturing powerhouse. The initiative has created jobs and facilitated technology adoption and capacity building in critical industries.
The scheme’s expansion across sectors highlights its role in addressing India’s trade deficit by reducing reliance on imports and fostering self-reliance. With its multi-sector focus, the PLI scheme is positioned as a cornerstone of India’s economic growth strategy in the coming years.
As India progresses towards its employment and manufacturing goals, the PLI scheme plays a vital role in positioning the country as a competitive player in the global market.
Source: News18