March 24, 2022
PLIs have been announced for 15 sectors and have accounted for government incentives worth INR 1.93 lakh crore since March ‘20
The scheme has received applications from over 900 players across 15 sectors and 350 have been approved
With almost 60% of Capex approved for 10 sectors, PLI is poised for a rapid on-the-ground execution
Nine out of 15 sectors can contribute approximately 6% of the total exports for the calendar year 2021
The PLI scheme will account for 13-15% of the average annual investment spending in key industrial sectors over the next three to four years and lead to a potential Capex of INR 2.5-3 lakh crore over the scheme period as per a report by Crisil. Since its introduction in March 2020, PLIs have been announced for 15 sectors and have accounted for government incentives worth INR 1.93 lakh crore. Around 50-60% of this amount is being invested to strengthen domestic manufacturing and exports and the rest toward localizing imports. The scheme has received applications from over 900 players across 15 sectors and 350 have been approved.
With almost 60% of Capex approved for 10 sectors, the PLI scheme is poised for rapid on-the-ground execution, and major spending is expected over FY23-FY26. While the Capex in mobile, pharma, and telecom sectors has already started, committed investments in capital-intensive sectors such as automobile and solar photovoltaics are slated to start from April 2022.
Approximately, 55% of the investments through the PLI will be towards electric vehicles and solar photovoltaics, which will spur the investment in green technology. In addition, nine out of the 15 sectors, such as mobiles, pharma, food processing, IT hardware, white goods, and speciality steel can contribute approximately 6% of the total exports for the calendar year 2021.