Sectoral investments under PLI schemes are expected to touch Rs 2 lakh crore in the coming years

The Ministry of Commerce and Industry said on Sunday that Rs 1.46 lakh crore has been invested in 14 sectors under production-linked incentive (PLI) schemes till August and the capital infusion is expected to reach Rs 2 lakh crore in the coming years.

Commerce and Industry Minister Piyush Goyal held in-depth discussions with companies that get fiscal benefits under the schemes to seek their comments and views.

The Minister established cooperation with 140 enterprises from 1,300 production units from 14 sectors that were beneficiaries of the program.

“The meeting also discussed the overall achievements of PLI programs. “An actual investment of Rs 1.46 lakh crore has been made (till August 2024) and is likely to touch Rs 2 lakh crore in the next year or so,” the ministry said in its statement. statement.

This has resulted in production/sales worth Rs 12.50 lakh crore and generation of approximately 9.5 lakh crore employment (direct and indirect), which is expected to reach 12 lakh crore soon.

Exports have crossed Rs 4 lakh crore with significant contribution from key sectors such as electronics, pharmaceuticals and food processing, he added.

During the meeting, Goyal urged the Indian industry to focus on prioritizing the production of quality goods to promote Brand India through sustainable practices.

He also called for focusing on increasing domestic added value and providing support to domestic producers in this regard.

During the three-hour interaction, CEOs of the beneficiary companies shared their views on PLI programs and provided suggestions to improve its effectiveness and streamline implementation.

The minister stated that the government is committed to expediting all necessary approvals related to the PLI industry and also providing hand-holding support for greater market access.

Talking to the media after the deliberations, the minister said it was expected that “we will witness additional production worth around Rs 11 lakh crore. But hearing some of the numbers today, my impression is that both domestic demand and exports: production will also be much higher than we expected.”

The minister said that units in these sectors are performing well and are now able to invest even without further support from the component manufacturing ecosystem as demand has started generating.

During the meeting, the companies presented their suggestions, including regarding some changes in government procurement.

“Overall, the policy is the same, but in some sectors the ecosystem takes time to develop and there is less domestic added value initially. Gradually growing. It was a good suggestion and I asked my officials to look into it if we could have a roadmap for these sectors so that they can become a tier 1 or 2 supplier,” Goyal said.

The prior experience requirement for participating in government contracts for manufacturers who are making some product in India or an innovative item for the first time can be challenging.

“Of course, if they are doing it for the first time in India or if there is an innovation that is coming to India for the first time, it is very difficult to have previous experience,” he said, adding: “I have asked such sectors to approach us with details, so that we can benefit from the technical knowledge and its advice and see if the same product can pass laboratory tests or other items can be eligible to start supply, being a new or innovative product without prior experience.”

The government has implemented the scheme in 2021 for 14 sectors, including electronics, pharmaceuticals, home appliances, telecom and drones, with an outlay of Rs 1.97 lakh crore. It aims to stimulate domestic production, attract investment and increase exports.

In the electronics sector, mobile phone production now accounts for half of India’s total production, with a “3-fold” increase in exports from 2020-21, the ministry said.

Further afield in the automotive sector, global champions have launched electric vehicles with significant investments in the country.