PLI Scheme: The government’s PLI scheme has attracted investments of more than Rs 1 lakh crore for 14 sectors by December 2023.
PLI Scheme: Under the Production-Linked Incentive (PLI) Scheme, which was started with the intention of promoting manufacturing in the country, huge investment has been seen from different sectors. According to government data, production-linked incentive schemes for 14 sectors have attracted investments of more than Rs 1,06,612 crore till December 2023. Government sources told CNBC-TV18 that an investment of Rs 25,813 crore was recorded under the PLI scheme for pharma drugs till December 2023. Whereas a target of Rs 17,275 crore was set for this period.
These companies of pharma sector benefited the most
According to the Department of Pharmaceuticals, major beneficiaries from the pharma sector include Dr. Reddy’s Laboratories, Cipla, Glenmark Pharma, Biocon, Wockhardt, Sun Pharma, Aurobindo Pharma, Torrent Pharma and Mylan Laboratories.
Slow response in these sectors
Meanwhile, slow response has been seen in PLI schemes for many sectors including IT hardware, auto, auto components, textiles and ACC battery storage. Sources said that to deal with this situation in IT hardware, PLI scheme for IT Hardware 2.0 was launched in May 2023.
In this, 27 applicants have been selected, which include all the big players in the IT hardware (laptop, tablet, AIO, ultra small form factor and server) industry. Sources said that an investment of Rs 13,000 crore has been made under Auto PLI till December 2023, while the schemes for sectors like textile and ACC battery are still in the initial stage.
Objectives of the scheme
The government had made it clear in December 2023 that it does not intend to launch more PLI schemes right now, but it has planned to make changes in the schemes of some sectors to ensure better growth. Under the existing PLI schemes announced by the Government of India with a total budget of Rs 1.97 lakh crore in 2021, sectors like telecommunications, white goods, textiles, manufacturing of medical devices, automobile, specialty steel, food products, high efficiency solar PV modules, advanced Chemistry comes in cell battery, drone and pharmaceuticals sectors. The objective of this scheme is to attract investment in modern technology to increase efficiency in India’s manufacturing sector.
