A year after the Center’s flagship Production-Linked Incentive (PLI) policy was introduced, investment in key industries meant to boost local manufacturing is stalling. This fiscal year, specialized steel, textiles, and IT hardware investment growth is “significantly slow.”
PLI programs for drones, bulk medications, telecom, mobile phones, pharmaceuticals, and food processing are all going well and are on track to meet or surpass government-envisioned goals for employment, production/sales, and investment. In terms of investments, PLI Schemes for IT Hardware, Textile Products, and Specialty Steel are progressing very slowly (in FY24).
While the investment target has been reached for bulk pharmaceuticals and medical devices under PLI schemes, actual production and sales have fallen short of the aim. The production and sales targets under the PLI Scheme for automobiles and auto components were met, but the investment target was not.
Regarding investment targets, there have been “shortfalls” in textile items, IT hardware, and speciality steel under PLI schemes. Production is valued at Rs 8.61 trillion and about 678,000 direct and indirect jobs have resulted from the investment.
The Rs 1.97 trillion PLI initiative seeks to increase employment possibilities, reduce cheap imports, improve the cost competitiveness of domestically made goods, and position India as a manufacturing powerhouse.
The program has been introduced for fourteen industries, including white goods, pharmaceuticals, telephony, textiles, cars, and drones. Although the implementation of these 14 programs took place between 2020–2021 and 2021–2022, incentive payments to participating enterprises began in the most recent fiscal year.