The Indian government met firms such as Foxconn, Samsung, Wistron, Dell, Nokia, Reliance Industries, among others, to find ways to boost manufacturing in the country with its production-linked incentive (PLI) scheme.
Investment of Rs 62,500 crore have been realized till March 2023 resulting into incremental production/ sales of over Rs 6.75 lakh crore and employment generation of around 325,000. Exports boosted by Rs 2.56 lakh crore till FY 2022-23. Incentive amount of around Rs 2,900 crore disbursed in FY 2022-23 under PLI schemes.
PLI schemes have played a significant role in promoting value addition (DVA) in various sectors. It has led to increased value addition in the electronics sector and in smartphone manufacturing, 23 percent and 20 percent respectively, from negligible in 2014-15.
The meeting, addressed by India’s Trade Minister Piyush Goyal on Tuesday, comes amid concerns that some of the businesses were facing delays in availing the incentives from New Delhi amid complicated procedures.
The discussions included ways to improve local manufacturing at competitive costs, higher domestic value-adds in production, and quick grievance redressal, the government said in a statement on Wednesday.
The meeting was also attended by executives from iPhone maker Wistron, laptop maker Dell, telecom network supplier Nokia Solutions and others that benefited from the scheme’s incentive payouts.
The PLI scheme, introduced in late 2020, is Prime Minister Narendra Modi’s main industrial policy to boost manufacturing.
The government has so far announced incentives for 14 sectors including electronics and technology products, pharmaceutical drugs, and drones, among others, drawing investments totalling 625 billion Indian rupees ($7.62 billion) until March 2023, per the statement.
Investments under the PLI scheme are expected to rise further to 2.74 trillion rupees as it runs its course, according to government estimates.
With more than 1.97 trillion rupees earmarked for incentives, payouts totalled 29 billion rupees until fiscal 2023 across eight industries.
