Govt Eyes Changes To PLI Schemes For Textiles, Food Processing & Pharma

(MENAFN- KNN India) New Delhi, Jan 31 (KNN) The government is contemplating adjustments to the Production Linked Incentive (PLI) schemes in specific sectors such as textiles, food processing, and pharmaceuticals, as disclosed by a senior official on Tuesday.

The official mentioned that a finalised Cabinet note is being prepared to seek approval for these modifications from the top authorities, with the intention of fostering increased participation in these sectors.

Introduced in 2021 for 14 sectors, including telecommunications, white goods, textiles, medical devices manufacturing, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell battery, drones, and pharmaceuticals, the PLI scheme carried a substantial outlay of Rs 1.97 lakh crore.

While some sectors like electronics are experiencing success, others are not meeting expectations.

As of October this fiscal year, the government has disbursed Rs 4,415 crore under the PLI schemes for eight sectors, encompassing electronics and pharmaceuticals.

Disbursement figures were Rs 1,515 crore from April to October in the fiscal year 2024, in contrast to Rs 2,900 crore in 2022-23 when payments under the scheme were initiated.

The disbursed incentive amounts were directed towards large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecommunications, food processing, and drones.

The primary goals of these schemes are to attract investments and cutting-edge technology in pivotal sectors, ensure operational efficiency, bring about economies of size and scale in the manufacturing sector, and enhance the global competitiveness of Indian companies and manufacturers.

(KNN Bureau)

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