New Delhi, Dec 18 (KNN) The Production Linked Incentive (PLI) Scheme has evidently achieved significant success in its aims to bolster India's manufacturing sector, enhance employment opportunities, and strengthen export performance, reported The Statesman.

The implementation of PLI Scheme in FY 2021-22 resulted in a 76 per cent surge in Foreign Direct Investment (FDI) inflow into the manufacturing sector, reaching USD 21.34 billion, compared to USD 12.09 billion in FY 2020-21, according to Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), as reported by The Statesman

Launched in March 2020, the PLI Scheme has demonstrably attracted major smartphone manufacturers to relocate their suppliers to India, including Taiwanese giant Foxconn, Wistron and Pegatron, reported The Statesman.

India's electronic goods exports experienced a 60 per cent increase in the April-October period of 2023, reaching USD 15.5 billion, compared to the entire fiscal year of 2022-23 with exports of USD 23.6 billion.

The DPIIT Secretary noted, “We have been able to increase the value addition in mobile manufacturing to 20 per cent within a period of three years whereas countries like Vietnam achieved 18 per cent value addition over 15 years and China achieved 49 per cent value addition in over 25 years. Seen in this perspective, it is a big achievement.”

The PLI scheme envisioned to make India ‘Aatma Nirbhar’ allocated Rs 1.97 lakh crore (USD 26 billion) across 14 key sectors to reinforce production capacity and foster global champions.

The Indian Telecom sector has achieved 60 per cent import substitution, transitioning towards near self-reliance in key equipment like Antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment).

Drones sector has seen a sevenfold increase in revenue due to the PLI Scheme which consists of all MSME Startups, according to data compiled by the Commerce and Industry Ministry.

The Scheme has facilitated a shift in India's export composition, transitioning from traditional commodities to high-value-added products such as electronics, telecommunication goods, and processed food items.

As per official data, approvals have been granted to more than 700 applications spanning 14 sectors under the PLI Scheme, with an expected investment of Rs 3.65 lakh crore.

Notably, 176 Micro, Small, and Medium Enterprises (MSMEs) are among the beneficiaries of the scheme, with a significant presence in sectors such as Bulk Drugs, Medical Devices, Pharmaceuticals, Telecommunications, White Goods, Food Processing, Textiles, and Drones.

(KNN Bureau)