New Delhi

The Indian government's ambitious production linked incentive (PLI) schemes are set to witness a significant capital infusion, with investments projected to reach Rs 2 lakh crore in the coming years. As of August 2024, the 14 sectors included in the PLI initiatives have already attracted investments totalling Rs 1.46 lakh crore, according to the latest statements from the commerce and industry ministry as detailed in a report by The Press Trust of India.

Advertisment

The report further added that, to enhance the effectiveness of these schemes, Commerce and Industry Minister Piyush Goyal recently engaged with representatives from 140 companies benefiting from these fiscal incentives. This comprehensive dialogue focused on the achievements of the PLI schemes, current investment levels, and future expectations. The minister expressed optimism about the trajectory of growth, indicating that actual investments are likely to increase notably over the next year.

The substantial investments have translated into impressive production and sales figures, amounting to Rs 12.50 lakh crore. Furthermore, these initiatives have generated around 9.5 lakh jobs, with projections suggesting this figure could rise to 12 lakh soon. Exports from these sectors have also surged, exceeding Rs 4 lakh crore, showcasing the potential of critical industries such as electronics, pharmaceuticals, and food processing.

During the meeting, Minister Goyal underlined the importance of producing high-quality goods to bolster Brand India while encouraging companies to focus on enhancing domestic value addition. Industry leaders contributed valuable insights on improving the implementation of the PLI schemes, reflecting a proactive approach towards strengthening manufacturing capabilities.

Advertisment

The government is committed not only to boosting investments but also to facilitating necessary approvals for PLI industries. Minister Goyal stated, "We expect to see additional production of about Rs 11 lakh crore," highlighting rising domestic demand and expanding export opportunities within these sectors.

Discussions also addressed challenges faced by industries requiring prior experience, particularly for new products being manufactured for the first time in India. Goyal encouraged these sectors to provide detailed feedback so that technical expertise can be leveraged to support innovation.

Brief history of the Production Linked Incentive (PLI) scheme

Advertisment

Launched in 2021, the PLI scheme covers 14 sectors including electronics, pharmaceuticals, telecommunications, and drones, with a total outlay of Rs 1.97 lakh crore. Its primary objective is to elevate domestic manufacturing capabilities, attract investments, and significantly increase exports.

Notably, within the electronics sector, mobile phone manufacturing now constitutes half of India's total output, with exports having tripled since 2020-21. The automotive sector has also attracted considerable investment, particularly in electric vehicles, positioning India as a formidable player in global manufacturing.