PLI scheme may drive GDP by 4% each year: Report

Mumbai, July 6 (KNN) It is likely that the production-linked incentives (PLI) scheme will boost India’s GDP by 4 per cent each year, said a report by Emkay Investment Managers.

The PLI scheme aims to enhance manufacturing in key areas by offering nearly Rs 2.4 lakh crore in incentives over the next five years.

Electronics, auto components, and pharmaceutical sectors has shown maximum interest in the scheme so far, as per the report.

Owing to robust returns manufacturing companies are adding capacities which are evident from the number of new manufacturing companies registered.

In the last seven years the registration of manufacturing companies has shot up to the highest ever.

Further over the past decade the share of manufacturing companies in total registrations is also at almost highest level.

The report also attributes the success of the PLI scheme to the China+1 strategy. Since the pandemic which originated there, China has been on the receiving end of many Western companies and governments.

The world's factory is again facing significant pushback after the recent lockdowns in many Chinese cities, which further aggravated supply chain as well as manufacturing disruptions.  (KNN Bureau)