PLI scheme powers India’s manufacturing boom with ₹1.61 lakh crore investment and soaring exports

The Central government’s flagship Production Linked Incentive (PLI) scheme for the manufacturing sector has brought in an investment of around ₹1.61 lakh crore till November 2024. The scheme, implemented across 14 sectors, has also seen production worth ₹14 lakh crore, against a target of ₹15.52 lakh crore up to FY 2024-25, the Union Ministry of Commerce and Industry said. The PLI schemes have also created direct and indirect employment for over 11.5 lakh people, the ministry added.

“PLI Schemes have transformed India’s export basket from traditional commodities to high value-added products such as electronics and telecommunication goods, processed food products, etc. The schemes have witnessed exports surpassing ₹5.31 lakh crore, with significant contributions from sectors such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom & Networking Products,” the ministry said in a statement.

The government has also disbursed incentives worth ₹14,020 crore under PLI schemes for 10 sectors—Large-Scale Electronics Manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom & networking products, food processing, white goods, automobiles & auto components, and drones & drone components.

The ministry said that the PLI scheme for specialty steel alone saw about ₹20,000 crore of investments out of the ₹27,106 crore committed by participating companies. While 14 of the 58 projects in specialty steel withdrew from the scheme due to changes in business plans and project execution delays in the first round, 35 companies have shown interest in the second round of the PLI scheme for specialty steel, with an additional commitment of ₹25,200 crore in investments. The Ministry of Steel is in the process of selecting and signing MoUs with these companies.

The ministry said the scheme has begun strengthening India’s position in global value chains. It cited the example of the PLI Scheme for Promoting Domestic Manufacturing of Medical Devices, under which 19 greenfield projects have been commissioned, leading to the production of 44 products, including high-end medical devices such as linear accelerators, MRI machines, CT scans, mammograms, C-arms, and ultrasound machines, which were previously imported. The ministry also pointed out that India has achieved 60% import substitution in telecom products under the PLI scheme for Telecom & Networking Products, as global tech companies have set up manufacturing units, turning India into a major exporter of 4G and 5G telecom equipment.

As of now, 764 applications have been approved under PLI schemes for 14 key sectors. Among the PLI beneficiaries, 176 MSMEs operate in sectors such as bulk drugs, medical devices, pharmaceuticals, telecom, white goods, food processing, textiles, and drones.