The Production Linked Incentive (PLI) schemes are creating a positive impact on India’s economy by boosting manufacturing, exports, and job opportunities. According to the Ministry of Commerce and Industry, PLI schemes have attracted ₹1.61 lakh crore in investments, helped generate production worth ₹14 lakh crore, and contributed to ₹5.31 lakh crore in exports. Additionally, these initiatives have created 11.5 lakh new jobs across various sectors.
What Are PLI Schemes and Why They Matter?
PLI schemes were launched by the Indian government to encourage domestic manufacturing, reduce dependence on imports, and make India a global manufacturing hub. By offering financial incentives to companies that increase their production and investment in India, the schemes aim to boost manufacturing capabilities and exports.
Key Achievements of PLI Schemes So Far
- Approved Applications:
So far, 764 applications have been approved under PLI schemes across 14 key sectors. Among these, 176 applications are from Micro, Small, and Medium Enterprises (MSMEs), benefiting sectors like bulk drugs, medical devices, textiles, food processing, telecom, white goods, and drones. - Export Boost:
The schemes have significantly contributed to India’s exports, which crossed ₹5.31 lakh crore (approximately $61.76 billion). Some of the top-performing sectors include electronics manufacturing, pharmaceuticals, telecom, food processing, and networking products. - Incentive Distribution:
- Total Incentives Paid: ₹14,020 crore has already been disbursed under the PLI schemes across 10 sectors.
- Specialty Steel Investment: Companies have invested ₹20,000 crore in specialty steel projects, generating 9,000 direct jobs. The government aims to disburse ₹2,000 crore as incentives by the end of the scheme.
Sector-Specific Highlights
- Specialty Steel:
Investments totaling ₹27,106 crore were committed, and 9,000 jobs have been created so far. However, 14 out of 58 approved projects withdrew due to delays and changing business plans. - Food Processing:
- Companies can file their claims until November 30 for millets and December 31 for other categories.
- For the financial year 2022-23, an incentive of ₹474 crore has been disbursed, and ₹700 crore is targeted for FY 2023-24.
- Medical Devices Manufacturing:
Under the PLI scheme for medical devices, 19 new manufacturing units have been set up. Production has started for 44 high-end medical devices, including MRI machines, CT scans, mammograms, ultrasound machines, and linear accelerators. Previously, these products were mostly imported. - White Goods (ACs and LED Lights):
About 84 companies have been approved under the PLI scheme for white goods, bringing in investments worth ₹10,478 crore to enhance domestic production of air conditioners and LED lights. - Telecom Equipment Manufacturing:
The telecom sector has seen a 60% reduction in imports due to increased domestic production. Major global technology firms have set up manufacturing units, making India a leading exporter of 4G and 5G telecom equipment.
Future Prospects and Second-Round Applications
For specialty steel, 35 more companies have shown interest in the second round of the PLI scheme, committing additional investments of ₹25,200 crore. This will further strengthen India’s position in the global specialty steel market.
Conclusion: A Step Towards ‘Atmanirbhar Bharat’ (Self-Reliant India)
The PLI schemes have already brought remarkable results by increasing investments, promoting domestic manufacturing, and creating millions of jobs. With more sectors and companies participating, the government’s goal of transforming India into a global manufacturing powerhouse is steadily becoming a reality.
