PLI Scheme To Attract Rs 3-4 Trillion In Investments, Create 200,000 Jobs By 2028: ICRA

New Delhi, Jun 13 (KNN) The Production Linked Incentive (PLI) scheme, introduced by the Indian government in 2021, is anticipated to draw substantial investments ranging from Rs 3 to 4 trillion over the next four years, according to K Ravichandran, Executive Vice President and Chief Ratings Officer, ICRA.

This investment drive is expected to generate approximately 200,000 employment opportunities across various sectors, with major projects anticipated in the semiconductor, solar module, and pharmaceutical intermediaries industries.

Ravichandran further stated that private sector capital expenditure (capex) is projected to rise in sectors such as oil and gas, metals and mining, hospitals, healthcare, and cement.

However, he emphasised the need for government intervention through tax incentives to bolster consumer demand, particularly in rural areas and among lower-income segments. Such measures could stimulate disposable income and drive private capex to unprecedented levels.

The PLI scheme, spanning 14 sectors with a total outlay of Rs 1.97 trillion, has already witnessed investments exceeding Rs 1.03 trillion and created over 678,000 jobs as of November 2023.

Notably, this wave of investment is aligned with the nation's focus on green energy initiatives, including renewable energy and electric vehicles.

While acknowledging the positive impact of the PLI scheme, Ravichandran underscored the importance of addressing demand-side factors through targeted policy measures to sustain the momentum of private sector investments and foster robust economic growth.

(KNN Bureau)