India’s manufacturing sector received a major boost as the government disbursed Rs 14,020 crore in incentives under the production-linked incentive (PLI) scheme, driving cumulative sales of Rs 14 lakh crore across key industries.
According to the Ministry of Commerce and Industry, the incentives span 10 sectors including electronics, IT hardware, bulk drugs, medical devices, pharma, telecom, food processing, white goods, automobiles, and drones.
PLI Fuels ‘Atmanirbhar Bharat’ With Rs 1.6 Lakh Crore Investment
The PLI scheme, central to India’s push for self-reliance under the ‘Atmanirbhar Bharat’ initiative, has attracted investments worth Rs 1.6 lakh crore so far.
Welcoming the move, India Electronics and Semiconductor Association (IESA) President Ashok Chandak stated, “This initiative is a major step toward job creation, the expansion of India’s manufacturing ecosystem and exports, in electronics and semiconductors. Looking ahead, we anticipate accelerated growth in the Electronics System Design and Manufacturing (ESDM) sector, fostering innovation, supply chain resilience, and positioning India as a global hub for high-value electronics production.”
He further noted that the momentum from current initiatives, along with the upcoming Semicon India Programme V2.0 and PLI scheme for components, would support India’s goal of a $500 billion electronics market and help meet the $103 billion semiconductor demand.
Impact: Higher Output, Employment, & Investments
The scheme has led to increased domestic output, new employment opportunities, and stronger exports.
It has also drawn significant investments from both Indian and global firms.
Till date, 764 applications have been approved across 14 sectors under the PLI scheme.
Officials have selected 176 MSMEs in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles, and drones.
By November 2024, reported investments under the scheme stood at Rs 1.61 lakh crore ($18.72 billion), generating production worth Rs 14 lakh crore ($162.84 billion), against a target of Rs 15.52 lakh crore by FY25.
The scheme has also created over 11.5 lakh jobs, both directly and indirectly.
With a shift from traditional exports to high-value products like electronics, processed foods, and telecom equipment, India’s PLI-led exports have crossed Rs 5.31 lakh crore ($61.76 billion), significantly strengthening the country’s export portfolio.
Each project under the PLI scheme approved through a transparent process, with implementation timelines ranging from 2 to 3 years.
As most units are still in the early stages, companies will progressively file incentive claims after the first year of production.
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