India to Rewrite PLI Playbook with a Holistic Strategy

By siliconindia  |  Monday, 31 March 2025, 12:51:46 PM IST

India to Rewrite PLI Playbook with a Holistic Strategy
The Indian government is planning to overhaul its Production-Linked Incentive (PLI) scheme with a more comprehensive 360-degree strategy, with inclusion of support for inputs, skilling, and ecosystem building for champion sectors. Ministries with suggestions for new sectors under the scheme have been requested to revisit their proposals accordingly.
Industries like footwear, toys, textiles, and specialty chemicals have been lobbying for inclusion in the PLI scheme, which seeks to build up India's indigenous manufacturing capabilities and enhance exports. The new approach is based on experience in the mobile phone industry, which has registered huge growth under the scheme with global giants like Apple increasing their vendor base in India. Increased imports of components from China are still a concern.
In order to counter such gaps, the Union Cabinet recently cleared a new component scheme for mobile phones, and the same is also being thought out for other industries. "For example, in the footwear industry, while international brands are eager to add more sourcing from India, they lack key inputs, which are still being sourced from China", a government official revealed.
The government is nudging companies to take their vendors to India so they can have an integrated supply chain, decreasing cost and reliance on imports. Though previous estimates hinted that available funds from the Rs 1.97 lakh crore in the 14 PLI sectors could help with new additions, talks indicate further funding could be needed.
This strategic revamp is in sync with India's Atma Nirbhar Bharat vision, seeking to transform the nation into a manufacturing hub. The new PLI framework is likely to create a more sustainable and globally competitive landscape for sectors, with a guarantee of long-term gains.

ON THE DECK

Top Banner

Related Articles