PLI schemes attract investments worth ₹62,500 cr till March 2023

India’s flagship production-linked incentive (PLI) scheme for the manufacturing sector has seen ₹62,500 crore worth of investments in different sectors until March 2023, Rajesh Kumar Singh, secretary, department for promotion of industry and internal trade (DPIIT), commerce ministry, said. Sectors like mobile manufacturing, pharma and medical devices, and food processing have attracted most of the investments.

According to official data, 733 applications for PLI have been approved in 14 sectors, with an expected investment of ₹3.65 lakh crore. Addressing a press conference in Delhi on June 13, Singh said these investments have resulted in an incremental production worth over ₹6.75 lakh crore and generated around 3.25 lakh new jobs. The PLI schemes also boosted exports to the tune of ₹2.56 lakh crore till March 2023 end, he said.

The government has disbursed around ₹2,900 crore in 2022-23 as an incentive under PLI schemes for sectors like large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing and drones, and drone components. The PLI scheme has also resulted in an increase in foreign direct investment (FDI) inflows, which touched $ 21.34 billion in 2021-22 as compared to $ 12.09 billion in 2020-21, Singh said. While drugs and pharmaceuticals saw a 46% increase in FDI inflows during this period, medical appliances saw an increase of 91%. Food processing industries also saw FDI inflow increase by 26% year on year. PLI has helped 176 MSMEs in sectors as varied as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles, and drones.

The scheme has also resulted in a reduction in import dependence in some segments, Singh said. While raw material imports in the pharmaceutical sector saw a reduction due to the PLI scheme, 60% of import substitution happened in the telecom sector. Singh said the country has become almost self-reliant in antennae, GPON (gigabit passive optical network), and CPE (customer premises equipment).

Startups manufacturing drones were the other industrial segment that saw a 7 times jump in turnover due to the PLI scheme, Singh said. PLI schemes were launched three years ago, with an overall incentive outlay of ₹1.97 lakh crore to boost India’s production capabilities in key sectors.