In a move aimed at boosting the manufacturing sector and fostering economic growth, the Indian government is set to disburse approximately Rs 13,000 crore to eligible firms as part of the production linked incentive (PLI) schemes. This development comes as efforts are underway to fine-tune the scheme for sectors that have not yet gained momentum. Rajesh Kumar Singh, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT), revealed the latest updates during a press conference on Friday.
Bolstering Economic Growth Through PLI Schemes
The PLI scheme, which was initially unveiled in 2021, covers a total of 14 sectors, including telecommunications, white goods, textiles, medical devices, automobiles, speciality steel, food products, and more. The scheme, backed by a staggering outlay of Rs 1.97 lakh crore, is geared towards attracting investments, boosting manufacturing efficiency, and enhancing the global competitiveness of Indian companies.
Disbursal Numbers Set to Soar
Rajesh Kumar Singh, while addressing reporters, highlighted the government's commitment to ramping up the disbursal of funds under the PLI scheme. "Starting from this year, the disbursal number will witness a significant surge," he stated. It is anticipated that the disbursal amount will reach a substantial Rs 13,000 crore in the current fiscal year. This impressive figure marks a substantial increase compared to the previous disbursement of Rs 2,900 crore, which took place until March 2023.
Challenges and Sector Adjustments
Despite the program's success in certain sectors, such as electronics, pharmaceuticals, medical devices, telecom, food processing, and white goods, there remain sectors that are struggling to pick up momentum. Among these are high-efficiency solar PV modules, advanced chemistry cell batteries, textile products, and specialty steel. To address these challenges, the government is actively working on making course corrections and adjustments to the PLI schemes through inter-ministerial consultations.
Tackling Key Issues
The government's efforts to drive the success of the PLI schemes are not without obstacles. Key issues such as the timely processing of claims, visa-related matters involving the expertise of Chinese professionals, and delays in obtaining environmental clearances have been raised by stakeholders. These issues are being addressed to ensure the seamless implementation of the PLI schemes.
Investment and Job Creation Highlights
The PLI schemes have already yielded substantial results. Rajesh Kumar Singh revealed that actual investments totaling Rs 78,000 crore have been made, resulting in sales exceeding Rs 6 lakh crore. Furthermore, the initiatives have contributed to a boost in exports by Rs 2.6 lakh crore and the creation of approximately 4 lakh jobs, thus significantly contributing to economic growth and employment generation.
While uncertainties remain regarding the complete disbursement timeline due to multiple influencing factors, the government remains committed to the success of the PLI schemes. These initiatives, spanning across various sectors, have the potential to drive economic growth, enhance manufacturing capabilities, and elevate Indian companies onto the global stage.
As the government continues to fine-tune the PLI schemes based on sector-specific needs and challenges, the manufacturing landscape in India is poised for transformation, ushering in a new era of growth and innovation.