In the pursuit of achieving ‘Atmanirbhar Bharat’ or a self-reliant India, the Ministry of Commerce and Industry has rolled out Production Linked Incentive (PLI) Schemes. These are targeted at 14 key sectors with a hefty outlay of Rs. 1.97 lakh crore (over US$26 billion). This initiative is designed to elevate India’s manufacturing prowess and boost exports significantly.
Analysis: The 14 sectors prioritized under the PLI schemes encompass a wide spectrum of industries, from Mobile Manufacturing to Drones and Drone Components. The underlying aim is to magnetize investments into crucial sectors, foster efficiency, and stimulate economies of size and scale in the manufacturing sector. This is expected to position Indian companies and manufacturers as globally competitive entities.
The PLI schemes promise a substantial upswing in production, employment, and economic growth over the next five years. Currently, they have been notified by the respective Ministries/Departments and are at different stages of implementation.
For the country’s MSME ecosystem, the PLI scheme could have a domino effect. Anchor units constructed in every sector are anticipated to lay down a fresh supplier/vendor base within the whole value chain. Most of these auxiliary units are predicted to be MSMEs.
Conclusion: As it stands, no proposals have been approved by the Union Cabinet to include any new sectors under the PLI Schemes. But, the existing ones, selected after comprehensive discussions with concerned Ministries/Departments and vetted by NITI Aayog, show considerable potential. These sectors are geared to leverage key technologies, exponentially increase employment, exports, and overall economic benefits for India’s economy. The PLI schemes demonstrate a concrete step towards building a robust and self-reliant manufacturing sector, key to realizing the vision of ‘Atmanirbhar Bharat’.
Ministry of Commerce & Industry
Production Linked Incentive Schemes for 14 key sectors aim to enhance India’s manufacturing capabilities and exports
Keeping in view India’s vision of becoming ‘Atmanirbhar’, Production Linked Incentive (PLI) Schemes for 14 key sectors have been announced with an outlay of Rs. 1.97 lakh crore (over US$26 billion) to enhance India’s Manufacturing capabilities and Exports.
The 14 sectors are: (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices (iv) Automobiles and Auto Components, (v) Pharmaceuticals Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods (ACs and LEDs), (x) Food Products, (xi) Textile Products: MMF segment and technical textiles, (xii) High efficiency solar PV modules, (xiii) Advanced Chemistry Cell (ACC) Battery, and (xiv) Drones and Drone Components.
The purpose of the PLI Schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive.
These schemes have the potential of significantly boosting production, employment and economic growth over the next five years or so.
PLI Schemes for all 14 Sectors have been notified by the concerned Ministries/ Departments after due approval. These Schemes are in various stages of implementation by the implementing Ministries/ Departments.
The PLI scheme is expected to have a cascading effect on the country’s MSME ecosystem. The anchor units that will be built in every sector are likely to set a new supplier/vendor base in the entire value chain. Most of these ancillary units are expected to be built in the MSME sector. Out of the 733 applications selected under various PLI Schemes, 176 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles & Drones.
All the approved sectors identified under PLI Schemes follow the broad criteria of focusing on key technologies where India can leapfrog and multiply employment, exports and overall economic benefits for the economy. These sectors were approved after vetting by NITI Aayog and after detailed deliberations with concerned Ministries/ Departments. As on date, Union Cabinet has not approved any proposal to add any new sectors under PLI Schemes.
This information has been provided by the Union Minister of State for Commerce and Industry, Shri Som Parkash in a written reply in the Lok Sabha today.
