PLI Schemes Attract Investment Of Over INR 1 Lakh Crore, Create 6.8 Lakh Jobs - Eastern Mirror
Wednesday, February 21, 2024
image
India

PLI schemes attract investment of over INR 1 lakh crore, create 6.8 lakh jobs

6091
By IANS Updated: Jan 17, 2024 7:11 pm
PLI schemes

NEW DELHI — Production Linked Incentive (PLI) Schemes witnessed over INR 1.03 lakh crore of investment till November 2023, which has led to sales to the tune of INR 8.61 lakh crore, according to data released by the Ministry of Commerce and Industry on Wednesday.

These investments have generated employment (direct & indirect) of over 6.78 lakh and led to a sharp increase in exports, the ministry said.

PLI schemes have witnessed exports surpassing INR 3.20 lakh crore, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom & networking products.

As on date, 746 applications have been approved in 14 sectors with expected investment of over INR 3 lakh crore. A total of 176 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles, and drones.

Several MSMEs are also benefiting under the scheme as they are serving as investment partners or contract manufacturers for large corporates.

Incentive amount of around INR 4,415 crore has been disbursed under PLI schemes for 8 sectors including 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 battery, chargers, printed circuit boards, camera modules, passive components and certain mechanics have been localised in the country.

Green shoots in the component ecosystem have emerged with large companies such as Tatas entering component manufacturing.

PLI beneficiaries account for only around 20 per cent of the market share, but have contributed to around 82 per cent mobile phones exports during FY 2022-23.

Production of mobile phones increased by more than 125 per cent and export of mobile phones increased around 4 times since FY 2020-21. Foreign Direct Investment (FDI) increased by around 254 per cent since the inception of the PLI scheme for LSEM, the official statement said.

Due to the PLI scheme, there has also 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. Production of 39 medical devices have commenced such as CT-Scan, linear accelerator (LINAC), rotational cobalt machine, C-Arm, MRI, cath lab, ultrasonography, dialysis machine, heart valves, stents, etc.

Import substitution of 60 per cent has been achieved in the telecom sector and sales of telecom and networking products by PLI beneficiary companies in FY 2023-24 increased by 370 per cent vis-a-vis base year (FY 2019-20).

Significant impact on investment in the drone industry with a CAGR of 90.74 per cent.

Under the PLI Scheme for Food Processing, sourcing of raw materials from India has seen significant increase which has positively impacted income of Indian farmers and MSMEs. Sales of organic products increased and Indian brand visibility enhanced in the international market through branding & marketing abroad.

The scheme has also led to increased millet procurement – from 668 MT (FY 20-21) to 3,703 MT (FY 22-23).

Keeping in view India’s vision of becoming ‘Atmanirbhar’, PLI schemes for 14 key sectors (with an incentive outlay of INR 1.97 lakh crore (over US$26 billion)) are under implementation to enhance India’s manufacturing capabilities and exports.

PLI schemes across these key specific sectors has started to make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global value chain.

The schemes have transformed India’s exports basket from traditional commodities to high value-added products such as electronics & telecommunication goods, processed food products, the Commerce Ministry added.

6091
By IANS Updated: Jan 17, 2024 7:11:07 pm
Website Design and Website Development by TIS