In a boost to the government’s Production-Linked Incentive (PLI) schemes, data reveals that investments totaling over Rs 1.06 lakh crore have poured into 14 sectors by December 2023. Notably, sectors such as pharmaceuticals and solar modules have emerged as frontrunners, while others like IT hardware, auto, and textiles show a more tepid response.
The PLI schemes, introduced in 2021 with an outlay of Rs 1.97 lakh crore, aimed to bolster sectors including telecommunications, white goods, textiles, medical devices, automobiles, and renewable energy, among others.
Pharmaceuticals and Solar Lead the Way
- The pharmaceuticals and drugs sector saw an impressive investment of Rs 25,813 crore, surpassing the expected Rs 17,275 crore. Major beneficiaries included prominent names like Dr Reddy’s Laboratories, Cipla, and Glenmark Pharma.
- High-efficiency solar PV modules also attracted significant attention, garnering Rs 22,904 crore against an expected investment of Rs 1.10 lakh crore. Beneficiaries in this sector included companies like Shirdi Sai Electricals, Reliance New Energy Solar Ltd, Adani Infrastructure, and Tata Power Solar.
Other Sectors Receive Healthy Investments
- The bulk drugs sector received Rs 3,586 crore against an expected Rs 3,939 crore.
- Medical devices saw investments of Rs 864 crore compared to the expected Rs 1,330 crore.
- Food processing sector secured Rs 7,350 crore, slightly below the expected Rs 7,541 crore.
- Telecom witnessed investments of Rs 2,865 crore, as opposed to the expected Rs 4,014 crore.
Challenges in Some Sectors
- However, certain sectors faced challenges in attracting investments. The IT hardware sector received only Rs 270 crore against an expected Rs 2,517 crore.
- Auto and auto components secured Rs 13,037 crore, falling short of the expected Rs 67,690 crore.
- Textiles received Rs 3,317 crore compared to the expected Rs 19,798 crore.
- ACC battery storage garnered Rs 3,236 crore against an expected Rs 13,810 crore.
Government’s Response
- The government is actively reviewing the performance of these sectors and may consider adjusting the scheme to improve outcomes.
- A total of Rs 4,415 crore has been disbursed under the scheme for eight sectors, including electronics and pharma, until October this fiscal year.
- Disbursements in FY24 reached Rs 1,515 crore till October, compared to Rs 2,900 crore in 2022-23 when the payments under the scheme commenced.
The PLI schemes continue to strive towards attracting investments in crucial sectors, promoting advanced technology, ensuring efficiency, and enhancing global competitiveness for Indian companies and manufacturers.
