Updated January 19th, 2024 at 13:10 IST
Centre not planning to expand PLI schemes beyond 14 sectors: Source
The government started PLI schemes for 14 sectors to boost exports and create more jobs.
No more PLI Schemes: Speculations around the possible extension of the Production Linked Incentive Scheme (PLI) schemes beyond the existing 14 sectors may well be put to rest.
According to highly placed sources of republic Business in the government, there is no scope for expansion of the ambit of PLI beyond 14 sectors.
“There are no such plans as of now for introducing more PLI schemes the thrust is to tweak the already existing schemes for 14 sectors and make them industry-friendly,” a senior government on the condition of anonymity, told Republic Business.
The government started PLI schemes for 14 sectors to boost exports and create more jobs. In addition, the focus was also on making India self-sufficient as far as manufacturing is concerned in India.
“The PLI is still a work in progress. It is a trial and error, we are still figuring out what is working and what is not working. There is a constant evaluation of the schemes happening at the government’s end,” the source told Republic Business.
The PLI schemes for 14 key sectors have been announced with an outlay of Rs 1.97 lakh crore to enhance India's Manufacturing capabilities and Exports. The key sectors for which the scheme was launched were mobile manufacturing and specify electronic components, the critical key starting materials/drug intermediaries & active pharmaceutical ingredients, manufacturing of medical devices, automobiles, and auto components, and many more. However, the progress so far showed that for some segments PLI was a success story and for some, it could have been a better show for some sectors.
“The PLI for smartphone manufacturing was a terrific success story but for some, it did not do much, so these things need to be relooked and revisited. We need to evaluate to know what worked and what did not work,” the official said.
As per the source, the final decision will be taken after a thorough evaluation of all 14 sectors' schemes. However, the industry is asking for expansion of the schemes to cover some new areas and sectors.
“The industry would ask for it, but we can’t go for mindless expansion as there is a cost attached to it. So decisions have to be taken after due diligence,” a government official added further
Published January 17th, 2024 at 19:28 IST