The government is contemplating adjustments to the Production Linked Incentive (PLI) schemes for specific sectors, including textiles, food processing, and pharmaceuticals, as per a senior official on Tuesday. The official mentioned that a finalized Cabinet note is set to seek approval for these proposed changes from higher authorities. The modifications are intended to enhance the attractiveness of these sectors and encourage more participation. The PLI scheme, introduced in 2021, covers 14 sectors, such as telecommunications, white goods, textiles, medical devices manufacturing, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharmaceuticals, with a total outlay of Rs 1.97 lakh crore.
While certain sectors, like electronics, are experiencing success, others are falling short of expectations. Until October of the current fiscal year, the government has disbursed Rs 4,415 crore under the PLI schemes for eight sectors, including electronics and pharmaceuticals. During the fiscal year 2024 up to October, Rs 1,515 crore was disbursed, compared to Rs 2,900 crore in 2022-23 when payments under the scheme were initiated.
The incentive disbursements have been directed towards various areas, including large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecommunications, food processing, and drones. The overarching goals of the PLI schemes are to attract investments and cutting-edge technology, enhance efficiency, introduce economies of size and scale in the manufacturing sector, and position Indian companies and manufacturers as globally competitive entities.
