According to government estimates, major electronics manufacturers, including those that produce mobile phones, have received more than half of the $2,875 crore in disbursements made so far under the government’s Production Linked Incentive (PLI) scheme for 14 industries. Much of the remaining market was dominated by pharmaceuticals and food items. There are 1.97 lakh crores invested in the PLI scheme overall.
Six industries—textiles, white goods, cars, auto components, solar PV modules, and ACC batteries are yet to see the start of disbursements, despite the fact that small sums have already been provided to bulk medications, medical equipment, telecom and networking products, drones, and technology items.
In order to increase production and export, the Centre announced the PLI program in 2020 to draw investments in 14 strategic and emerging industries. Beneficiaries of the program receive bonuses based on increased sales. The government anticipates that over the course of five years, it will generate $500 billion in production and generate 60L new employment.
Actual PLI claims totaling 3,420 crores have come from eight different sectors, and 2,875 crores of those have already been paid out. Within a month or so, the remaining claims will probably be paid up.
A total of 717 applications from various sectors have been granted up through December 2022, with estimated investments of 2.74 lakh crore. The DPIIT reports that actual investments of 53,500 crores have been made in the specified areas, resulting in additional production/sales of over 5 lakh crore and the creation of over 3 lakh jobs.
