NEW DELHI: The government is focusing on the existing production-linked incentive (PLI) schemes for the 14 sectors and for the time being it has no plans to expand them to new sectors such as toys. According to the Department for Promotion of Industry and Internal Trade (DPIIT), Secretary, Rajesh Kumar Singh, PLI schemes for sectors including pharmaceuticals, white goods, and electronics are progressing well and currently demand their full attention.
“Currently, we are focusing on the 14 production-linked incentive schemes, which are up and running in a good way. So for the time being, the new PLIs are not being considered,” Singh said while further adding that the government will ensure that these existing schemes get implemented well and thereafter it will see.
The government had previously intended to extend the production-linked incentive scheme to new sectors such as leather, toys, and new-age e-bikes in order to utilize the remaining budget allocated for the 14 sectors. Introduced in 2021, the PLI scheme encompassed 14 sectors, including telecommunications, white goods, textiles, medical devices manufacturing, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharmaceuticals, with a budget of Rs 1.97 lakh crore.
Singh also revealed that the DPIIT has commissioned a third-party assessment of the PLI scheme focused on white goods, specifically air conditioners and LED lights. The study, assigned to the Arun Jaitley National Institute of Financial Management (AJNIFM), will evaluate the scheme from various perspectives and determine if any adjustments or modifications are necessary. Furthermore, the department plans twill conduct similar assessments for other initiatives, including industrial corridors.
Meanwhile, a recent case study conducted by the Indian Institute of Management (IIM) Lucknow, under the supervision of the department revealed significant progress in the toys sector during the financial year 2022-23, compared to FY 2014-15. Notably, the analysis showcased a remarkable decline of 52% in toy imports, coupled with an impressive increase of 239% in toy exports during the mentioned period. Furthermore, the study identified an overall enhancement in the quality of toys available in the domestic market.
Over a span of six years, from 2014 to 2020, the government measures resulted in a doubling of toy manufacturing units, a reduction in dependence on imported inputs from 33% to 12%, and a significant increase in gross sales value with a compound annual growth rate (CAGR) of 10%.