NEW DELHI: In the Budget, the finance minister has allocated Rs 12,493.02 crore for the Production Linked Incentive (PLI) scheme across different sectors for this financial year.
The Ministry of Electronics and Information Technology (MeitY) has received the largest share, with Rs 6,200 crore earmarked for electronics manufacturing.
For large-scale electronics manufacturing, the government has earmarked Rs 6,125 crore, while the incentive for IT Hardware is Rs 75 crore. Over and above, for the development of Semiconductors and Display Manufacturing Ecosystem in India, Rs 6,903 crore has been allocated in this Budget.
Another significant chunk has gone to the automobile sector. The scheme for the automobiles and its components has been increased to Rs 3,500 crore, a 624% jump from Rs 484 crore in the revised estimates of 2023-24. The reason being, as per the economic survey released on July 22, 2024, the PLI scheme for automobiles and auto components has attracted investments of Rs 14,043 crore till March 2024, accounting for 20% of the total committed amount of Rs 67,690 crore.
The PLI scheme was introduced to promote domestic manufacturing and has achieved success in mobile manufacturing. India’s mobile phone production has grown from 5.8 crore units in 2014-15 to 33 crore units in 2023-24, with exports increasing to nearly 5 crore units.
Subsequently, the government has expanded the PLI scheme to 14 sectors, including telecommunications, white goods, textiles, medical devices, automobiles, specialty steel, food products, solar PV modules, advanced chemistry cell batteries, drones, and drug manufacturing industries.
This year, the government has allocated Rs 2,143 crore for PLI in the pharmaceutical industry, Rs 57 crore for drones and drone components, and Rs 298.02 crore for ACs and LED lights. However, no allocation has been made for PLI scheme to promote telecom manufacturing.
Mobile manufacturing
Mobile phone exports have risen significantly, from Rs 1,556 crore in 2014-15 to Rs 1,28,982 crore in 2023-24, while imports have decreased from Rs 48,609 crore to Rs 7,665 crore during the period