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PLI Scheme Attracts Rs 1.76 Lakh Crore Investments, Creates Over 12 Lakh Jobs
PLI Scheme Attracts Rs 1.76 Lakh Crore Investments, Creates Over 12 Lakh Jobs: Report
Under the PLI scheme, electronics and mobile manufacturing rose 146 per cent from Rs 2.13 lakh crore in FY 2020-21 to Rs 5.25 lakh crore in FY 2024-25.
New Delhi: India's Production Linked Incentive (PLI) scheme has attracted Rs 1.76 lakh crore in committed investments since 2020 and created over 12 lakh jobs, a report said. The scheme has approved 806 applications across 14 strategic sectors, primarily with the goal of boosting manufacturing in line with the Atmanirbhar Bharat initiative, a report from India Narrative said.
The scheme offers rewards to companies for increased sales beyond a set baseline. Initially, sectors such as mobile electronics, active pharmaceutical ingredients, and medical devices were included, and later, automobiles, textiles, food processing, solar modules, semiconductors, and others were added. (Also Read: GST 2.0 Starts Tomorrow: Here's What Gets Cheaper And What Stays Expensive– Check List)
Under the PLI scheme, electronics and mobile manufacturing rose 146 per cent from Rs 2.13 lakh crore in FY 2020-21 to Rs 5.25 lakh crore in FY 2024-25. The auto and auto-component PLI has drawn over Rs 67,000 crore in investments. By March 2025, PLI participants in all sectors reported combined sales surpassing Rs 16.5 lakh crore, the report said.
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Although MSMEs benefit indirectly, their direct inclusion in PLI schemes remains limited, it said, adding that addressing these gaps will be critical for the scheme to reach its full transformative potential. Several projects have lagged in terms of execution amidst the competition from countries like Vietnam or China, which requires constant innovation in policy design and logistics infrastructure, it noted. (Also Read: Mcap Of 7 Top Firms Rises By Rs 1.18 Lakh Crore Last Week)
While electronics and pharma are surging due to a boost from the PLI scheme, some sectors, such as textiles and white goods, need more time to scale. The report said that enhanced monitoring, complementary reforms in logistics and infrastructure, and increased budget allocations for FY 2025-26 will strengthen PLI's reach and elevate manufacturing's share of GDP to 25 per cent.
Further, the scheme is expected to anchor India in global supply chains for electronics, EVs, and pharmaceuticals
Source: ZeeNews
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