In making a headway towards achieving self-reliance under the ‘Atmanirbhar Bharat’ vision, The Central government’s Production Linked Incentive(PLI) schemes has emerged as a pivotal force in enhancing the nation’s manufacturing and export capabilities with an outlay of Rs 1.97 lakh crore (over USD26 billion). The PLI scheme resulted in ₹12.50 lakh crore (USD 150 billion) in production, ₹4 lakh crore (USD 48 billion) in exports, and the generation of 9.5 lakh jobs. Additionally, over 1,300 manufacturing units were established across 14 sectors and 27 states/UTs under the scheme this year.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), this year saw unlocking of Rs1.5 lakh crore investment potential and 9.4 lakh potential jobs from 12 greenfield infrastructure projects. This was under the National Industrial Corridor Development Project.
Auto PLI Secures Investment worth 20,715 Crore
According to an IANS report, The PLI Scheme for auto components industry and automobile has ranked in investment worth Rs 20,715 crore. It also attained Rs 10,472 crore in incremental sales, with the first incentive disbursement slated for FY 2024-25.
Various reports suggests that the Ministry of Heavy Industries has approved 82 applicants from 115 received with an estimated investment of Rs 42,500 crore, incremental sales of Rs 2,31,500 crore and 1.4 lakh jobs in a span of five years.
The PLI scheme for automobile and auto components industry, with a budgetary outlay of Rs 25,938 crore, aims to enhance India’s manufacturing capabilities for advanced automotive technology (AAT) products, overcome cost disabilities, and build a robust supply chain.
The scheme covers the period FY 2023-24 to FY 2027-28, with incentive disbursements from FY 2024-25 to FY 2028-29.
What are Production Linked Incentive (PLI) Schemes
The Initiative launched in November 2020, covers 14 key sectors and has already delivered milestones. The Production Linked Incentive (PLI) Scheme is a government initiative to boost India’s manufacturing sector and make it a global hub. The scheme offers financial incentives to businesses in industries like electronics, textiles, pharmaceuticals, and automobiles, based on their performance. The PLI Scheme is aligned with the Make in India initiative and the vision of Atmanirbhar Bharat.
14 key sectors
The PLI scheme has significantly expanded India’s manufacturing footprint, spanning 14 vital sectors such as Mobile Manufacturing, Pharmaceuticals, Automobiles, Specialty Steel, Telecom, and Advanced Chemistry Cell (ACC) Batteries.
