Summary:

India's Production-Linked Incentive (PLI) programs are expected to generate Rs. 39,35,007 crore (US$ 459 billion) over the next five to six years, benefiting over 720 enterprises. The PLI aims to enhance manufacturing, reduce import reliance, increase exports, and create employment. Key sectors include energy transition, with ACC batteries contributing Rs. 2,11,753 crore (US$ 24.7 billion), automobiles (Rs. 11,145 crore/US$ 1.3 billion), and solar modules (Rs. 5,53,816 crore/US$ 64.6 billion).

Growth in PLI sectors has been uneven. By August 2024, total incremental sales across all sectors reached Rs. 12,85,950 crore (US$ 150 billion), led by telecom, pharmaceuticals, and white goods. However, medical devices, textiles, and auto components have lagged. To address these challenges, the government is refining the allocation process and adjusting approval criteria to increase local value addition and improve incentive disbursements. Higher incentive disbursements are expected as production ramps up by H1 FY25.

Source: IBEF

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