DPIIT updates on PLI schemes; Rs.2,900cr disbursed in FY 2022-23 to 8 sectors
The Production Linked Incentive (PLI) Schemes have led to a 76% increase in FDI in the Manufacturing sector in FY 2021-22 (US$21.34 billion) compared to previous FY 2020-21 (US$12.09 billion).
Giving this update on the PLI Schemes, DPIIT Secretary Rajesh Kumar Singh told a press conference on 13 June that 733 applications have been approved in 14 sectors with expected investment of Rs.3.65 lakh crore.
He added that 176 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Pharma, Telecom, White Goods, Food Processing, Textiles & Drones.
Actual investment of Rs.62,500 crore has been realized till March 2023 which has resulted in incremental production and sales over Rs.6.75 lakh crore and employment generation of around 325,000.
Exports were boosted by Rs.2.56 lakh crore till FY 2022-23.
Incentive amount of around Rs.2,900 crore was disbursed in FY 2022-23 under PLI Schemes for 8 Sectors viz. Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing and Drones & Drone Components.
PLI Scheme has led to major smartphone companies shifting its suppliers to India, e.g., Foxconn, Wistron and Pegatron. As a result, top high-end phones are being manufactured in India, he said.
Of the US$101 billion total electronics production in FY 2022-23, smartphones constitute US$44 billion including US$11.1 billion as exports.
Import substitution of 60% has been achieved in the Telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment), he said.
Drones sector has seen a 7-time jump in turnover due to the PLI Scheme which consists of all MSME Startups.
Under the PLI Scheme for Food Processing, sourcing of raw materials from India has seen significant increase which has positively impacted income of Indian farmers and MSMEs.
Due to the PLI Scheme, there has been a significant reduction in imports of raw materials in the Pharma sector.
Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G, and transfer of technology has happened in manufacturing of Medical Devices such as (CT scan, MRI etc.), he said.
PLI Scheme-supported sectors that have seen an increase in FDI inflows from FY 2021-22 to FY 2022-23 are Drugs and Pharmaceuticals (+46%), Food Processing Industries (+26%) and Medical Appliances (+91%).
PLI Schemes have transformed India’s exports basket from traditional commodities to high value-added products such as electronics & telecommunication goods, processed food products etc. Fiinews.com
