government considers modifying PLI schemes for textile, food processing, and pharmaceutical sectors, says report
Published on: January 31, 2024.
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Government to Revamp Production Linked Incentive Schemes to Boost Textiles, Food Processing, and Pharmaceuticals
In a bid to attract more players and boost certain sectors including textiles, food processing, and pharmaceuticals, the government is considering making changes to the production linked incentive (PLI) schemes, according to a senior official. A Cabinet note has been finalized to seek approval for these changes from the top authorities.
The PLI scheme was initially announced in 2021 for 14 sectors such as telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharmaceuticals, with a budget of Rs 1.97 lakh crore.
While some sectors like electronics have performed well under the PLI scheme, others have not met expectations. As of October this fiscal year, the government has disbursed Rs 4,415 crore for eight sectors, including electronics and pharmaceuticals.
In the previous financial year, Rs 1,515 crore was disbursed until October, while it amounted to Rs 2,900 crore in 2022-23 when the incentive scheme payments started. The disbursed amount was allocated for large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom, food processing, and drones.
The PLI schemes aim to attract investments and cutting-edge technology in key sectors, improve efficiency, bring economies of size and scale in the manufacturing sector, and enhance the global competitiveness of Indian companies and manufacturers.
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