| Work Detail |
The Government of India has begun the process of tweaking production-linked incentive (PLI) schemes for textiles, food processing and pharmaceuticals. The changes are intended to make these sectors more appealing to companies participating in the PLI program.
The move assumes significance as electronics, pharmaceuticals, food processing, and telecom have benefited the most from PLI schemes while other sectors underperformed. A course correction was required in a few sectors to attract more investment. The Rs 1.97 lakh crore PLI scheme was announced in 2021 for 14 sectors, including telecom, white goods, textiles, pharma, medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery and drones.
The government has disbursed Rs 4,415 crore under the scheme for eight sectors, including electronics and pharma, till October. In FY24, Rs 1,515 crore were expended till October, as against Rs 2,900 crore in FY23. As per the Department for Promotion of Industry and Internal Trade (DPIIT), 746 applications have been approved in 14 sectors with an expected investment of over Rs three lakh crore till date. About 176 MSMEs are among the PLI beneficiaries in the pharma and telecom sectors.
Till November 2023, over Rs 1.03 lakh crore of investment was reported which has led to production/sales of Rs 8.61 lakh crore and employment generation of over 678,000. There are about 1,000 units under the scheme. |
