IANS | 02 Jan, 2024
The Production Linked Incentive (PLI) scheme was
launched in March 2020, initially targeting three sectors ─
electrical component, medical devices and mobile & allied component manufacturing.
Later, this scheme was extended to 14 sectors. Since then the scheme has come a
long way in shaping up the Indian manufacturing sector, and latest official
figures show that what has been achieved is
According to a Commerce Ministry statement,
the PLI schemes have led to investments of over Rs 95,000 crore till September,
resulting in production/sales of Rs. 7.80 lakh crore and employment generation
(direct & indirect) of over 6.4 lakh. Exports have been boosted by Rs. 3.20
lakh crore. Value addition of 20% in mobile manufacturing and import
substitution of 60% in the telecom sector have been achieved.
Under the schemes, incentives worth around Rs. 2,900
crore have been disbursed in FY 2022-23. Recently, former RBI governor Raghuram
Rajan asked the Centre to release the data on the amount of subsidies
distributed under the PLI schemes, adding that it would allow a proper public
assessment of the scheme. In terms of mobile manufacturing, he added that production
should not be limited import-dependent assembly jobs.
Meanwhile, the Government has extended the tenure of
the PLI scheme for automobile and auto components by one year, making partial amendments
as per which incentive will be applicable for a total of five consecutive
financial years, starting from FY 2023-24, but not beyond the financial year
ending on March 31, 2028. Total outlay of the scheme has been increased to
Rs 25,938 crore.
I invite your opinions.