India's ambitious production-linked incentive (PLI) scheme, aimed at promoting domestic manufacturing across 14 sectors, has successfully drawn INR 1.03 lakh crore of investment,
resulting in notable sales, including exports worth INR 3.20 lakh crore, according to a
commerce ministry official. Despite this, the total incentives paid out so far amount to only
INR 24,415 crore.
The scheme, which came into effect on April 1, 2020, has seen significant success in sectors
such as large-scale electronics manufacturing, pharmaceuticals, and medical devices.
Mobile manufacturing alone has achieved sales of INR 4.12 lakh crore, with exports worth
INR 1.8 lakh crore. Additionally, the scheme has enabled the manufacturing of critical
pharmaceutical products like Penicillin G and medical devices such as MRI machines,
reducing import dependency.
Major industry players, including Foxconn, Wistron, Pegatron, Samsung, Dell, GE
Healthcare, Siemens, Glenmark Pharma, Toyota, Bosch, Hitachi, and LG, have availed the
benefits of the PLI scheme.
While incentives amounting to INR 24,415 crore have already been disbursed across eight
sectors, the total outgo is expected to rise by the end of the fiscal year on March 31, 2024.
The primary objective of the PLI scheme is to boost domestic manufacturing and reduce
imports, and the government is confident of achieving these goals as the sectors gain
momentum.
So far, 746 applications have been approved under the PLI scheme, resulting in the
establishment of over 1,000 production facilities across the country. This has led to the
creation of approximately 6.78 lakh direct and indirect employment opportunities.
