PLI schemes attracted investments worth Rs 1.03 lakh crore till Nov: Govt

Investment in PLI schemes: Production Linked Incentive (PLI) Schemes witnessed over Rs 1.03 trillion of investment till November 2023, which has led to production/ sales of Rs 8.61 trillion and employment generation (direct & indirect) of over 6.78 lakhs, a government release said it on Wednesday. 

According to the release, PLI Schemes have witnessed exports surpassing Rs. 3.20 trillion, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom and networking products.

The report mentioned that, as of date, 746 applications have been approved in 14 sectors with an expected investment of over Rs. 3 lakh crore. 176 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, White Goods, food processing, and textiles & drones. Several MSMEs are serving as investment partners/ contract manufacturers for large Corporations.

Incentive Galore

The government release also highlighted that an incentive amount of around Rs 4,415 crore was disbursed under PLI Schemes for 8 Sectors that include large-scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom & networking products, food processing, and drones & drone components.

“Manufacturing of various electronic components like batteries, chargers, PCBA, PCB, camera modules, passive components, and certain mechanics have been localized in the country,” the release stated further. 

Green shoots in the component ecosystem wherein large companies such as TATAs have entered into component manufacturing. PLI beneficiaries account for 20 per cent of the market share only, however, have contributed to  82 per cent of mobile phone exports during FY 2022-23. Production of mobile phones increased by more than 125 per cent and export of Mobile Phones increased ~4 times since FY 2020-21. 

Foreign Direct Investment

According to the government data, FDI increased by 254 per cent since the inception of the PLI scheme for LSEM.

“Due to the PLI Scheme, there has been a significant reduction in imports of raw materials in the Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G,” the release added further. 

The release throwing light on Import substitution added that around 60 per cent has been achieved in the Telecom sector and sales of Telecom & Networking Products by PLI beneficiary companies in FY 2023-24 increased by 370 per cent when compared with FY20.