The Production Linked Incentive scheme has delivered a close to Rs 2 lakh crore thrust to the vision of self-reliant India. It has enhanced the country’s manufacturing output and export performance with investment of Rs 1.97 lakh crore, which works out to more than $26 billion.
Data from the Union Commerce and Industry ministry indicate this flagship incentive programme has facilitated cumulative investment worth Rs 1.46 lakh crore, or about $17.5 billion, triggered production/sales of Rs 12.50 lakh crore and helped exports to Rs 4 lakh crore, a report by ANI stated.
What is the PLI scheme
But, in a sense, the PLI scheme has helped generate total employment of 9.5 lakh. It includes both direct and indirect employment. In fact, experts have pointed out that one of the most important collateral benefits of this incentive scheme has been generation of blue-collar employment, which major multilateral institutions such as ILO has labelled as the only hope of India to meet the challenge of generating employment towards the base of the economic pyramid.
The Centre has so far paid incentives worth about Rs 9,721 crore till the end of FY24. The scheme has left a visible impact in sectors such as consumer electronics, cellphone manufacturing, automobiles, pharmaceuticals, speciality steel, telecom, advanced chemistry cell batteries. In total the benefits have encompassed 14 sectors.
What is PLI and its benefits
As for the geographical spread, the PLI scheme has delivered an impact in 27 states and UTs, where they incentives have helped set up more than 1,300 manufacturing units. These manufacturing facilities fall under the ambit of 10 ministries. According to the report, the Micro, Small, and Medium Enterprises (MSME) sector has been a major beneficiary of the PLI scheme. It has resulted in numerous ancillary units being developed in the MSME sector, a sector that is usually labour-intensive. The white goods sector such as ACs and LED light manufacture got a major boost, for example. As the name implies the incentive structure is linked to production and achieving targets. This sector has an outlay of Rs 6,238 crore for between FY22 and FY29. But even most of the tenure remaining, this sector has already fulfilled 47% of its investment target of Rs 6,962 crore. It has already created the full employment generation target.
The Production Linked Incentive, popularly known as PLI, is a govt program designed to offer financial incentives for manufacturing products within India in sectors such as electronics, textiles, pharmaceuticals, automobiles. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
