The industry has welcomed the central government’s commitment to bolstering India’s manufacturing sector following the disbursement of ₹14,020 crore under the Production-Linked Incentive (PLI) scheme. The scheme, spread across multiple sectors, has resulted in cumulative sales of ₹14 lakh crore so far.
According to data compiled by the Ministry of Commerce and Industry, incentives worth ₹14,020 crore have been disbursed under the PLI schemes in 10 sectors, including large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom products, food processing, white goods, automobiles, and drones.
The PLI schemes, designed in line with India’s vision of achieving self-reliance (‘Atmanirbhar Bharat’), cover 14 key sectors and have attracted investments worth ₹1.6 lakh crore.
Commenting on the development, Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), said, “This initiative is a major step toward job creation, expansion of India’s manufacturing ecosystem, and boosting exports, particularly in electronics and semiconductors. Going forward, we expect accelerated growth in the Electronics System Design and Manufacturing (ESDM) sector, fostering innovation, strengthening supply chains, and positioning India as a global hub for high-value electronics production.”
He further noted that the current momentum, supported by initiatives such as the upcoming Semicon India Programme V2.0 and the PLI scheme for electronic components, would help achieve a targeted $500 billion electronics market and meet the projected $103 billion semiconductor demand with significant value addition.
The PLI schemes have incentivized domestic manufacturing, leading to increased production, job creation, and higher exports. They have also drawn significant investments from both domestic and foreign companies.
To date, 764 applications have been approved under the PLI schemes for the 14 sectors, with 176 Micro, Small and Medium Enterprises (MSMEs) among the beneficiaries. These include sectors such as bulk drugs, medical devices, pharmaceuticals, telecom, white goods, food processing, textiles, and drones, according to an official statement.
As of November 2024, actual investments of around ₹1.61 lakh crore ($18.72 billion) have been reported. This has generated production worth approximately ₹14 lakh crore ($162.84 billion) against the target of ₹15.52 lakh crore up to FY 2024-25. The scheme has also created employment for over 11.5 lakh individuals, both directly and indirectly.
The PLI schemes have helped transform India’s export basket, shifting from traditional commodities to high value-added products such as electronics, telecommunications goods, and processed food products. Exports under the scheme have exceeded ₹5.31 lakh crore ($61.76 billion), with significant contributions from sectors like large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom and networking products.
Individual cases under the PLI scheme have been approved transparently over time. Projects typically require 2 to 3 years for implementation, depending on the manufacturing sector, and incentive claims are generally submitted after the first year of production. As a result, many projects are still at the implementation stage and will be filing claims in the coming period.
—IANS
