Investments in key sectors identified to boost domestic manufacturing under the Centre’s flagship production-linked incentive (PLI) scheme are slowing down just a year after their launch.
Investment growth in textiles, information technology hardware and special steel is “significantly slow” this fiscal year, according to a review report by an inter-ministerial panel that conducts periodic stocktaking of the plan.
The government was expecting an investment of Rs 49,682 crore in FY2024. Of this, 61.8 per cent or more than Rs 30,695 crore has been made across all 14 sectors during the first nine months of this financial year.
Apart from the above three sectors, progress has been slow in the case of medical devices, automobiles and auto components, ACC batteries and white goods.
According to assessments made in a review meeting, PLI schemes for mobile phones, bulk drugs, pharmaceuticals, telecom, drones and food processing are performing well and meeting or surpassing investment, production/sales as well as employment targets. On track to do more. by the government.
“The progress of PLI schemes of IT hardware, textile products and specialty steel is quite slow in terms of investment (in FY24),” according to the minutes of the review meeting. business standard,
The panel comprises key stakeholders of PLI schemes, concerned ministries/departments, NITI Aayog and Department for Promotion of Industry and Internal Trade (DPIIT).
Despite investment in the last financial year exceeding government estimates, progress was not uniform across schemes.
By FY23, under all PLI schemes, investment of Rs 75,917 crore has been made against the target of Rs 60,345 crore, resulting in production/sales of Rs 5.96 trillion and production/sales of Rs 5.78 trillion and targets of 254,000 jobs respectively. In comparison, 367,000 direct jobs were gained. ,
“Under PLI schemes for bulk drugs and medical devices, while the investment target has been met, the actual production/sales have been below the target. Under the PLI scheme for automobiles and auto components, the production/sales target was achieved, but the investment target was not achieved,” according to the minutes.
Progress under PLI schemes for textile products, IT hardware and special steel has been “lacking” with respect to investment targets.
On a cumulative basis, the scheme has resulted in investments worth Rs 1.03 trillion so far and exports exceeding Rs 3.20 trillion since its implementation.
According to DPIIT data, the investment generated Rs 8.61 trillion and provided direct and indirect employment to more than 678,000 people.
The Rs 1.97 trillion PLI scheme aims to make India a manufacturing superpower, improve cost competitiveness of locally produced goods, create employment opportunities, curb cheap imports and boost exports.
The scheme has been launched for 14 sectors including mobile, drone, telecom, textiles, automobile, white goods and pharmaceutical drugs. While these 14 schemes were launched between 2020-21 and 2021-22, the incentive distribution to companies participating in the scheme started from the previous financial year.
first published: February 11, 2024 | 9:51 pm Is
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