India's Production-Linked Incentive Scheme Attracts Over $17 Billion in Investment

ENA Sectors 2024-09-26 14:13:14 New Delhi, Sep 26 (KNN) Indias efforts to boost domestic manufacturing through cash incentives under the Production-Linked Incentive (PLI) scheme have attracted over USD 17 billion in investments since its launch in 2020, a senior government official revealed on Wednesday. This comes as the country intensifies efforts to reduce dependence on imports, particularly from China. The PLI scheme, which offers manufacturers cash incentives ranging from 4-6 per cent on incremental sales, was introduced across 14 key sectors, including electronics, pharmaceuticals, textiles, and white goods. The initiative is part of a broader strategy to strengthen Indias manufacturing base and position the country as a global hub for production. The PLI scheme has been successful in attracting investments and boosting domestic manufacturing, said Amardeep Singh Bhatia, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). He added that India has emerged as the worlds second-largest producer of mobile phones, with Apples iPhone exports alone surpassing USD 12 billion in the 2023/24 fiscal year. The scheme has generated substantial results, with production valued at approximately Rs 11 trillion (USD 131.6 billion) and the creation of nearly one million jobs over the past four years. In addition to reducing mobile phone imports from China, India is now aiming to expand domestic production of IT hardware, such as laptops, tablets, and servers. On Tuesday, the government extended its import management system, introduced in November 2023, which mandates companies to register their imports of laptops and tablets. We have sent a clear signal to the industry that we aim to cut imports, particularly from China, one government official stated. India's IT hardware market is estimated to be worth USD 20 billion, with about USD 5 billion of that met by domestic production. As part of the government's strategy to enhance local manufacturing, incentives have already been approved for 27 IT hardware manufacturers, including global giants like Acer, Dell, HP, and Lenovo. This is expected to drive USD 42 billion in production over the coming years. Local electronics manufacturers, such as Dixon Technologies, have also benefitted from the scheme. Dixon aims to produce 2 million units by FY26, catering to 15 per cent of India's domestic demand for laptops, according to Executive Director Prithvi Vachani. With rising demand for electronics driven by increased business activities, education, and incomes, India is poised to become a key player in the global electronics supply chain. (KNN Bureau) 39410 https://knnindia.co.in/news/newsdetails/sectors/indias-production-linked-incentive-scheme-attracts-over-17-billion-in-investment 2024-09-26 14:13:14 knnindia.co.in India's Production-Linked Incentive Scheme Attracts Over $17 Billion in Investment