Production Linked Incentive Schemes witness over Rs.1.03 lakh crore of investment till Nov 2023

The Production Linked Incentive (PLI) Schemes witnessed over Rs. 1.03 lakh crore of investment till November 2023, which has led to production/ sales of Rs. 8.61 lakh crore and employment generation (direct and indirect) of over 6.78 lakhs.

PLI Schemes have seen exports exceed Rs. 3.20 lakh crore, with substantial contributions from areas such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom and Networking items.

As of now, 746 applications have been approved in 14 sectors, with an estimated investment of more than Rs. 3 lakh crore. 176 MSMEs are among the PLI recipients in areas such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing and Textiles & Drones. Several MSMEs serve as investment partners or contract manufacturers for large corporations.

Around Rs. 4,415 crore in incentives were awarded under PLI Schemes for eight sectors: Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom and Networking Products, Food Processing, and Drones and Drone Components.

The country now manufactures a wide range of electronic components, including batteries, chargers, PCBA, PCB, camera modules, passive components, and some mechanics. Green shoots in the component ecosystem, with huge firms such as TATAs venturing into component production. Although PLI beneficiaries make up only over 20% of the market, they account for approximately 82% of mobile phone exports in FY 2022-23.

Production of mobile phones increased by more than 125% and export of Mobile Phones increased ~4 times since FY 2020-21. Foreign Direct Investment (FDI) increased by ~254% since the inception of the PLI scheme for LSEM.

Due to the PLI Scheme, there has been a significant reduction in imports of raw materials in the Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G. Production of 39 Medical Devices has commenced such as CT-Scan, Linear Accelerator (LINAC), Rotational Cobalt Machine, C-Arm, MRI, Cath Lab, Ultrasonography, Dialysis Machine, Heart Valves, Stents, etc.

Import substitution of 60% has been accomplished in the telecom industry, and PLI beneficiary enterprises’ sales of telecom and networking products increased by 370% in FY 2023-24 compared to the base year (FY 2019-20). Significant impact on Drone sector investment, with a CAGR of 90.74%.

Under the PLI Scheme for Food Processing, raw material sourcing from India has increased significantly, boosting the incomes of Indian farmers and MSMEs. Organic product sales increased, as did Indian brand visibility in the worldwide market as a result of branding and marketing efforts. The Scheme has also resulted in increased Millet procurement, from 668 MT (FY 20-21) to 3,703 MT (FY 22-23).

PLI Schemes for 14 major industries [with an incentive outlay of Rs. 1.97 lakh crore (about US$26 billion)] are being implemented to increase India’s manufacturing capacity and exports, in line with the country’s objective of becoming ‘Atmanirbhar‘.

The PLI Scheme in these key sectors has begun to make Indian manufacturers globally competitive, attract investment in core competency and cutting-edge technology, ensure efficiencies, create economies of scale, boost exports, and establish India as an integral part of the global value chains.

PLI Schemes have transformed India’s export basket from traditional commodities to high value-added products such as electronics & telecommunication goods, processed food products etc.