Production Linked Incentive Schemes Drive Rs 1.46 Trillion Investment, Says Piyush Goyal

New Delhi, Sep 30 (KNN) In a recent announcement, Piyush Goyal, Union Minister of Commerce and Industry, revealed that the 14 sectors covered under the Production Linked Incentive (PLI) schemes have attracted significant investments, totalling Rs 1.46 trillion as of August 2024. 

The minister expressed optimism that this figure could reach Rs 2 trillion in the coming years, further bolstering India's manufacturing landscape.

The ministry's statement highlighted that Goyal has engaged in detailed discussions with over 140 companies, out of the 1,300 manufacturing units benefiting from the PLI schemes. These interactions aim to gather input and feedback on the schemes' effectiveness. 

"Overall achievement of PLI schemes was also discussed during the meeting. Actual investment of Rs 1.46 trillion has been realised, and we anticipate reaching Rs 2 trillion soon," the statement read.

The implementation of these schemes has already led to remarkable outcomes, including the generation of production and sales worth Rs 12.50 trillion and the creation of approximately 950,000 jobs, with expectations of reaching 1.2 million soon. 

Additionally, exports have surpassed Rs 4 trillion, particularly benefiting key sectors such as electronics, pharmaceuticals, and food processing.

During the three-hour interaction with CEOs of beneficiary companies, Goyal emphasized the importance of producing high-quality goods to enhance Brand India. He urged the industry to focus on increasing domestic value addition and extending support to local manufacturers. 

The minister noted that, based on current trends, production could exceed the expected additional output of Rs 11 trillion, driven by both domestic demand and export opportunities.

Moreover, Goyal acknowledged suggestions from industry leaders regarding amendments in government procurement processes. 

He highlighted the challenges faced by manufacturers new to the market, particularly those introducing innovative products without prior experience. 

"It is very difficult to have prior experience when launching something for the first time in India," he noted. Goyal assured that the government would explore ways to facilitate the entry of these new and innovative products into the procurement process, possibly through laboratory testing.

Since its launch in 2021 with an outlay of Rs 1.97 trillion, the PLI scheme aims to bolster domestic manufacturing, attract foreign investment, and increase exports across various sectors, including electronics, pharmaceuticals, white goods, telecommunications, and drones. 

Notably, the electronics sector has experienced a remarkable transformation, with mobile phone manufacturing now constituting half of India's total output and exports tripling since 2020-21. 

The automobile sector has also seen significant investment, particularly in electric vehicles, positioning India as a key player in the global market.

As the PLI schemes continue to gain momentum, Goyal remains committed to ensuring that India emerges as a manufacturing hub, poised for sustained growth and innovation.

(KNN Bureau)