New Delhi, India – The Production Linked Incentive (PLI) Schemes in India have seen a substantial investment of over Rs. 1.03 lakh crore until November 2023, leading to robust production and sales totaling Rs. 8.61 lakh crore. The schemes have significantly contributed to employment generation, with over 6.78 lakhs of direct and indirect jobs.
Exports under the PLI Schemes have surpassed Rs. 3.20 lakh crore, showcasing the success of sectors like Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, Telecom & Networking products, and more.
As of now, 746 applications have been approved across 14 sectors, with an expected investment of over Rs. 3 lakh crore. Among the beneficiaries, 176 Micro, Small, and Medium Enterprises (MSMEs) have played a crucial role in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles, and Drones.
Under the PLI Schemes, an incentive amount of around Rs. 4,415 crore has been disbursed for eight sectors, including Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, and Drones & Drone Components.
The PLI Scheme has stimulated the localization of various electronic components in the country, contributing to the growth of the component ecosystem. Notably, PLI beneficiaries, constituting approximately 20% of the market share, have accounted for around 82% of mobile phone exports in FY 2022-23. The production of mobile phones has witnessed a remarkable increase, with over 125%, and mobile phone exports have surged nearly four times since FY 2020-21.
In the Pharma sector, the PLI Scheme has led to a significant reduction in imports of raw materials. Unique intermediate materials and bulk drugs, including Penicillin-G, are now being manufactured in India. Additionally, 39 Medical Devices such as CT-Scan, Linear Accelerator (LINAC), MRI, Cath Lab, Dialysis Machine, and more have commenced production.
The Telecom sector has achieved a 60% import substitution, with PLI beneficiary companies experiencing a 370% increase in sales of Telecom & Networking Products in FY 2023-24 compared to the base year (FY 2019-20). The Drone industry has witnessed substantial investment and growth, with a Compound Annual Growth Rate (CAGR) of 90.74%.
Under the PLI Scheme for Food Processing, there has been a notable increase in sourcing raw materials from India, positively impacting the income of Indian farmers and MSMEs. The scheme has led to increased Millet procurement, enhancing Indian brand visibility in the international market.
In alignment with India’s vision of ‘Atmanirbhar Bharat’ (self-reliant India), the PLI Schemes across 14 key sectors, with an incentive outlay of Rs. 1.97 lakh crore, are playing a pivotal role in making Indian manufacturers globally competitive, attracting investments, ensuring efficiencies, enhancing exports, and positioning India within the global value chain.
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