Government Disburses ₹1,596 Crore Under PLI Schemes in 1H FY25

The Indian government has allocated ₹1,596 crore under the Production-Linked Incentive (PLI) schemes across six sectors, including electronics and pharmaceuticals, during the April-September period of the current fiscal year. Initiated in 2021, the PLI schemes aim to boost investments, enhance manufacturing capabilities, and improve India’s global competitiveness across 14 strategic sectors.

PLI Disbursals: Sectoral Distribution

Of the total ₹1,596 crore disbursed, the largest allocation of ₹964 crore was directed towards large-scale electronics manufacturing. This was followed by pharmaceuticals, which received ₹604 crores, food products with ₹11 crores, telecommunications at ₹9 crores, bulk drugs with ₹6 crores, and drones at ₹2 crores. Cumulatively, incentives disbursed under the PLI schemes stood at ₹9,721 crore as of FY24.

These schemes are designed to benefit not only major industries but also micro, small, and medium enterprises (MSMEs), as anchor units in each sector create demand for a new supplier base throughout their value chains.

Economic Impact of PLI Schemes

As of August 2024, the PLI schemes have resulted in ₹1.46 trillion of investments across 14 sectors, leading to incremental production and sales valued at over ₹12.50 trillion. These initiatives have generated over 9.5 lakh jobs and achieved exports exceeding ₹4 trillion. Over 760 applications have been approved under the scheme, with the respective departments overseeing disbursals.

The government envisions the PLI schemes as a pathway to scale up efficiencies in manufacturing, introduce cutting-edge technologies, and position Indian industries as global leaders in their respective domains.

Conclusion

The PLI schemes have demonstrated significant progress, with investments, employment generation, and export growth reflecting their transformative potential. By supporting key industries and MSMEs alike, these incentives aim to strengthen India’s manufacturing ecosystem and drive economic growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.