NEW DELHI: Production Linked Incentive (PLI) scheme is expected to attract a capex of nearly Rs 3 lakh crore over the next five years and has potential to generate employment for over 60 lakh, according to the Economic Survey.
The survey, released on Tuesday, predicts that the scheme across these key specific sectors is poised to make domestic manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology. The scheme will increase share of manufacturing sector in total capital formation, which currently stands at nearly 17-20% between FY12 and FY20.
“It is believed there will be a significant reduction in trade deficit with domestic production substituting for imports. Sectors under which the scheme has been announced currently constitute nearly 40% of total imports. The scheme, spread across 14 sectors, can enhance the country’s annual manufacturing capex by 15 to 20% from FY23,” reads the survey.
The government has approved 717 applications under 14 schemes by December 31, 2022. It is believed more than 100 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, telecom, white goods and food processing.
“As per recent reporting from implementing ministries/departments, nearly Rs 47,500 crore of investment has been made; production/sales of Rs 3.85 lakh crore of eligible products and employment generation of nearly 3 lakh has been reported and 106% achievement of actual investment reported versus the corresponding projections of FY227.” The government recently launched a design led PLI in June 2022 to promote the entire value chain in telecom manufacturing and to build a strong ecosystem for 5G as part of the PLI scheme for telecom & networking products.
In September 2022, the Cabinet recently approved PLI scheme (Tranche II) on ‘National Programme on High-Efficiency Solar PV Modules’, with an outlay of Rs 19,500 crore to build an ecosystem for manufacturing of high-efficiency solar PV modules in India, thus reducing import dependence in the area of renewable energy.
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