New Delhi: The central government’s Production-Linked Incentive (PLI) scheme has received positive industry response following the disbursement of Rs 14,020 crore across multiple manufacturing sectors.
According to recent data from the Ministry of Commerce and Industry, the initiative has generated cumulative sales of Rs 14 lakh crore to date, demonstrating significant progress in strengthening India’s manufacturing capabilities.
The disbursed incentives span ten critical sectors including large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom products, food processing, white goods, automobiles, and drones.
These sectors represent key focus areas in the government’s strategy to enhance domestic production capacities.
Designed to align with India’s vision of self-reliance under the ‘Atmanirbhar Bharat’ initiative, the comprehensive PLI framework now covers 14 key sectors and has successfully attracted investments totaling Rs 1.6 lakh crore, creating substantial industrial momentum across diverse manufacturing segments.
Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), expressed strong support for the initiative, stating, “This initiative is a major step toward job creation, expansion of India’s manufacturing ecosystem, and boosting exports, particularly in electronics and semiconductors.
Going forward, we expect accelerated growth in the Electronics System Design and Manufacturing (ESDM) sector, fostering innovation, strengthening supply chains, and positioning India as a global hub for high-value electronics production.”
He further emphasised that the current momentum, reinforced by initiatives such as the upcoming Semicon India Programme V2.0 and the PLI scheme for electronic components, would contribute significantly toward achieving a targeted USD 500 billion electronics market and meeting the projected USD 103 billion semiconductor demand with substantial domestic value addition.
The PLI schemes have proven effective in stimulating domestic manufacturing capabilities, resulting in increased production volumes, job creation, and enhanced export performance.
The initiative has also successfully attracted significant investment commitments from both domestic companies and international corporations seeking to establish or expand their manufacturing presence in India.
Official data indicates that 764 applications have received approval under the PLI schemes across the 14 sectors, with notable inclusion of 176 Micro, Small and Medium Enterprises (MSMEs) among the beneficiaries.
These approvals span sectors including bulk drugs, medical devices, pharmaceuticals, telecom, white goods, food processing, textiles, and drones, according to government statements.
As of November 2024, reported investments have reached approximately Rs 1.61 lakh crore (USD 18.72 billion), supporting production output of roughly Rs 14 lakh crore (USD 162.84 billion) against the target of Rs 15.52 lakh crore through FY 2024-25.
The employment impact has been substantial, with the creation of over 11.5 lakh jobs through both direct and indirect channels.
The PLI initiative has contributed to diversifying India’s export portfolio, transitioning from traditional commodity exports toward higher value-added products including electronics, telecommunications equipment, and processed food items.
Export value under the scheme has surpassed Rs 5.31 lakh crore (USD 61.76 billion), with particularly strong contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom and networking products.
Applications under the PLI scheme undergo transparent evaluation and approval processes.
Implementation timelines typically extend over two to three years, varying by manufacturing sector, with incentive claims generally submitted following the first year of production.
Consequently, numerous projects remain in implementation phases and will be submitting claims in upcoming periods as they achieve operational status.
