The Indian government has reaffirmed its commitment to boosting domestic manufacturing and exports through its Production Linked Incentive (PLI) Schemes. Union Minister of State for Commerce and Industry, Jitin Prasada, provided details on the progress of these initiatives in a written reply to the Lok Sabha today.
The PLI Schemes, designed to support India’s vision of becoming ‘Atmanirbhar’ (self-reliant), cover 14 key sectors with a total outlay of Rs. 1.97 lakh crore (over US$26 billion). These sectors range from mobile manufacturing and pharmaceuticals to advanced technologies like drones and solar PV modules.
According to the Minister, as of March 2024, the schemes have attracted investments of Rs. 1.23 lakh crore and generated employment for around 8 lakh people. A total of 755 applications have been approved across the 14 sectors.
The selection criteria for beneficiaries under these schemes include factors such as willingness to invest, production of approved product categories, eligible net worth, and domestic value addition, among others.
Prasada highlighted two specific schemes implemented by the Ministry of Heavy Industries: the PLI Scheme for Automobile and Auto Components (PLI-Auto) and the PLI Scheme on National Programme on Advanced Chemistry Cell (PLI-ACC) Battery storage.
Notably, both these schemes consider expenditure on Research and Development as eligible investment, encouraging firms to adopt cutting-edge technologies.
The government expects these schemes to significantly boost production, increase manufacturing activities, and contribute to economic growth over the next five years.
By attracting investments in key sectors and promoting efficiency and economies of scale, the PLI Schemes aim to make Indian companies and manufacturers globally competitive.