India's manufacturing sector is embarking on a transformative journey, driven by forward-thinking policies aimed at reshaping its global presence. Central to this evolution is the Production Linked Incentive (PLI) Scheme, a cornerstone of the government's bold vision to establish the nation as a leading global manufacturing hub while promoting innovation, enhancing efficiency, and boosting competitiveness across critical industries.
The PLI scheme has achieved remarkable milestones in terms of investment, production, and job creation.As on August 2024, across 14 sectors, investment of Rs. 1.46 lakh crore have been realized which has resulted in incremental production/sales of over Rs. 12.50 lakh crore, employment generation of over 9.5 lakhs, and exports surpassing Rs. 4 lakh Crore with significant contributions from sectors such as electronics, pharmaceuticals, and food processing. Incentive of Rs 2,968 Crorein 8 sectors and Rs. 6,753 Crore in 9 sectors during FY 2022-23 and FY 23-24 respectively.
Launched in 2020, the PLI Scheme is more than just a policy; it is a strategic leap toward self-reliance. Aligned with the vision of Atmanirbhar Bharat and the larger Make in India initiative, the PLI Scheme seeks to strengthen the manufacturing backbone, reduce reliance on imports, and balance growth with sustainability. It underscores the nation’s resolve to lead in production excellence, foster innovation, and create a thriving industrial ecosystem that powers both local progress and global competitiveness.Production Linked Incentive (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 14 sectors are :
1. Mobile Manufacturing and Specified Electronic Components,
2. Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients,
3. Manufacturing of Medical Devices
4. Automobiles and Auto Components
5. Pharmaceuticals Drugs
6. Specialty Steel
7. Telecom & Networking Products
8. Electronic/ Technology Products
9. White Goods (ACs and LEDs)
10. Food Products
11. Textile Products: MMF segment and technical textiles
12. High efficiency solar PV modules
13. Advanced Chemistry Cell (ACC) Battery
14. Drones and Drone Components.
PLI schemes have the potential of significantly boosting production, increase manufacturing activities and contribute to economic growth over the next five years or so. As on date, 764 applications have been approved under PLI Schemes across 14 sectors. Out of these 764, the Food Products sector stands out with the highest share of 182 approvals, followed by Automobiles & Auto Components sector follows with 95 approvals. Textile Products: MMF Segment and Technical Textiles received 74 applications approved, Specialty Steel secured 67 approvals, while White Goods (ACs and LEDs) received 66. Additionally, sectors such as Critical Key Starting Materials/ Drug Intermediaries & Active Pharmaceutical Ingredients received 51 approvals, Pharmaceuticals Drugs received 55 approvals, Telecom & Networking Products got 42 approvals and Electronic/ Technology Products received 27 approvals. Manufacturing of Medical devices and Mobile Manufacturing & Specified Electronic Components bothreceived 32 approvalseach. Emerging areas like Drones and Drone Components got 23 approvals, High-Efficiency Solar PV Modules received 14 and Advanced Chemistry Cell (ACC) Battery received 4 approvals. The diversity in approvals highlight the scheme’s focus on future-ready industries, underscoring its comprehensive approach to strengthening India’s position as a global manufacturing hub.
In conclusion, the PLI scheme is poised to create a cascading impact on India’s MSME ecosystem by fostering the development of ancillary units across value chains, predominantly within the MSME sector.By aligning with the vision of Atmanirbhar Bharat, the PLI scheme is not only driving industrial growth but also paving the way for India’s self-reliance and global leadership in manufacturing.
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