The production-linked incentive scheme launched by the Central Government in August of 2020. Under the PLI scheme the government provides the manufacturing industries with subsidies. The subsidies distributed among the industries are production-linked incentives.
Jitin Prasada, Minister of State for Commerce and Industry informed the Parliament about the success of the PLI scheme. Additionally, Jitin informed the parliament about the success of the scheme on various parameters mentioned below.
- The scheme has generated over 9.5 lakh jobs also it has produced direct and in-direct employment for many people.
- PLI scheme has attracted an investment of Rs 1.46 lakh crore up-till August 2024. The investments has come across 14 different sectors.
- Investments in the PLI Scheme has resulted in the incremental production and sales of about 12.5 lakh crore.
- Exports from PLI Scheme have observed exports surpassing Rs 4 lakh crore. The exports have resulted from significant contributions in sectors such as electronics, pharmaceuticals and food processing.
Production-linked Incentive Scheme- Government Vision
The PLI scheme aims to create 2.5 lakh jobs for the food processing sector by 2026-27. Although the scheme has already generated about 2.45 lakh jobs by June 2024
The central government launched the scheme with a vision to boost domestic manufacturing and reduce the reliance on imports. PLI has launched for the electronics sector however it now covers multiple industries. The industries include pharmaceuticals, textiles, automotive, and renewable energy. The scheme aims to attract investment, enhance exports, and generate employment. The government expects PLI contributing to India’s goal of becoming a global manufacturing hub.
PLI offers financial incentives typically 4-6 per cent of incremental sales. The government gives incentives to eligible companies that meet specified production and investment targets. Data from various ministries has shown that sectors like mobile phones, food processing, and pharmaceuticals showed a strong performance. These three sectors also account for over 75 per cent of the total jobs created.
Commerce minister said that there was no proposal under consideration for addition of new sectors under the PLI scheme. He added “Approved products under PLI Schemes have been strategically selected to align with national goals, increase production capacity, enhance global competitiveness and promote exports in critical sectors such as electronics, renewable energy, pharmaceuticals, textiles,”.
Power Secretary Pankaj Agarwal had previously hinted at a PLI scheme for transmission equipment manufacturing. The scheme will be useful to boost the power transmission infrastructure.
PLI has covered incentives for 14 key sectors with an outlay of Rs 1.97 lakh crore to enhance India’s manufacturing capabilities and exports. The sectors include mobile manufacturing and specified electronic components, medical devices and pharmaceutical ingredients, automobiles and auto components, high-efficiency solar PV modules, batteries, drones and drone components.
