PLI Scheme Draws Rs 1.46-Lakh-Crore Investment In Four Years, Government Tells Parliament
There is no proposal under consideration for addition of new sectors under the PLI scheme, minister Jitin Prasada says in the Lok Sabha.
The production-linked incentive scheme, under which the manufacturing industries get subsidies, has attracted an investment of Rs 1.46 lakh crore till August 2024 across 14 sectors, the government told Parliament on Tuesday.
The investments have resulted in incremental production and sales of over Rs 12.5 lakh crore and employment generation of over 9.5 lakh, according to Jitin Prasada, the minister of state for commerce and industry.
"PLI Schemes have witnessed exports surpassing Rs 4 lakh crore with significant contributions from sectors, such as electronics, pharmaceuticals and food processing," Prasada said in a written reply to a question in the Lok Sabha.
The Modi government rolled out the subsidy scheme in August 2020 and since then, the PLI has covered incentives for 14 key sectors with an outlay of Rs 1.97 lakh crore to enhance India's manufacturing capabilities and exports. The scheme aimed to shore up manufacturing of goods and reduce reliance on costly imports, particularly from China.
These sectors include mobile manufacturing and specified electronic components, medical devices and pharmaceutical ingredients, automobiles and auto components, high-efficiency solar PV modules, batteries, and drones and drone components.
Prasada said there was no proposal under consideration for addition of new sectors under the PLI scheme.
"Approved products under PLI Schemes have been strategically selected to align with national goals, increase production capacity, enhance global competitiveness and promote exports in critical sectors such as electronics, renewable energy, pharmaceuticals, textiles," he said.
Power Secretary Pankaj Agarwal had previously hinted at a PLI scheme for transmission equipment manufacturing to boost the power transmission infrastructure.
In September, Commerce Minister Piyush Goyal told PLI beneficiaries that units in these sectors were performing well and could now invest independently, as demand for component manufacturing has started to grow.
"Overall, the policy is the same, but there are certain sectors where the ecosystem takes time to develop, and initially, the domestic value add is less," Goyal had said. "Gradually it goes up. That was a good suggestion, and I asked my officials to examine whether we could have a roadmap for these sectors through which they can transition to become a class 1 or class 2 supplier."
