Industry Applauds Centre's Rs 14,020 Crore PLI Disbursement
The sector has appreciated the government's efforts to consolidate India's manufacturing base after Rs 14,020 crore were disbursed under the production-linked incentive (PLI) scheme. The program, which cuts across several sectors, has prompted sales of Rs 14 lakh crore and continues to draw large investments.
The Centre has offered incentives to ten strategic sectors, which have been reported by the Ministry of Commerce and Industry, namely large-scale manufacturing of electronics, IT hardware, bulk drugs, medical devices, pharma, telecom products, food processing, white goods, autos, and drones. The policy has contributed towards the vision of making India 'Atmanirbhar' in 14 strategic sectors and has managed to attract investment of Rs 1.6 lakh crore.
Industry leaders have welcomed the move, citing its role in boosting domestic manufacturing, exports, and job creation. Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), mentioned its importance in enhancing the Electronics System Design and Manufacturing (ESDM) sector. "Going forward, we see growth in electronics and semiconductors picking up pace, driving innovation, supply chain diversity, and making India a world hub for high-value electronics manufacturing", he said.
The current momentum, combined with the forthcoming Semicon India Programme V2.0 and the PLI scheme for electronic components, is likely to be instrumental in realizing a $500 billion electronics market and catering to India's estimated $103 billion semiconductor need.
764 applications have so far been approved under PLI schemes in 14 sectors. Of these, 176 MSMEs have been benefited across sectors such as bulk drugs, medical devices, pharmaceuticals, telecom, white goods, food processing, textiles, and drones. The actual investment achieved as of November 2024 has been Rs 1.61 lakh crore ($18.72 billion), yielding Rs 14 lakh crore ($162.84 billion) worth of production. The program has also created direct and indirect employment of over 11.5 lakh persons.
Further, the PLI scheme has led a revolution in India's export landscape by shifting focus towards high-value offerings from conventional commodities like large-scale electronics, telecom products, and processed food items. The scheme helped exports pass the Rs 5.31 lakh crore ($61.76 billion) mark, with impressive production from industries such as large-scale electronics, pharmaceuticals, food processing, and telecom and networking products.
The implementation of the scheme follows a transparent approval mechanism, and projects take two to three years to go through. Majority of the projects are now in the implementation phase, and incentive claims are anticipated after the first year of production. Industry players are hopeful about its long-term contribution to India's manufacturing and export growth.
