PLI schemes hit, India beats competing countries, significant increase in production, employment generation and economic growth

The ruling Modi government at the center, engaged in nation building for the last 9 years, is bringing more than one of its achievements to the public in the current election year. In this matter, responsible politicians and officials at both the party and the government level are active and telling people about the achievements made by the bold and visionary initiatives of the Modi government. Due to this, while talented people are getting excited, on the other hand, the common people are getting the satisfaction that when the government is performing better, they will also get its benefits sooner or later and are getting it too. The manner in which PLI schemes have become a hit and have led to a significant increase in production, employment generation and economic growth, is of far-reaching significance for India and its people.

According to Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), FDI in manufacturing sector is expected to increase by 76 per cent (USD 21.34 billion) in FY 2021-22 as compared to the previous FY 2020-21 (USD 12.09 billion) due to PLI schemes. US Dollar) has increased significantly. We have been able to increase value addition in mobile manufacturing by 20% within a span of 3 years, while countries like Vietnam have achieved 18% value addition in 15 years and China has achieved 49% value addition in 25 years. Seen in this perspective, it is a great achievement.

It is clear that due to Production Linked Incentive (PLI) schemes, there has been a significant increase in production, employment generation, economic growth and exports in the country. It is to be noted that the PLI schemes envisaged by Prime Minister Narendra Modi with the aim of making India ‘Atmanirbhar’, Rs 1.97 lakh crore (about US$ 26 billion) for 14 sectors to help them strengthen their production capabilities and become global champions Built on the foundation of an incentive outlay of Rs.

Sectors for which PLI schemes are in place and have seen an increase in FDI inflows from FY 2021-22 to FY 2022-23 are drugs and pharmaceuticals (+46 per cent), food processing industry (+26 per cent) and medical devices (+91 percent). PLI schemes have changed India’s list of exports from traditional commodities to high value-added products such as electronics and telecommunication goods, processed food products, etc.

So far, 733 applications have been approved in 14 sectors with an estimated investment of Rs 3.65 lakh crore. PLI beneficiaries include 176 MSMEs in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones. At the same time, till March 2023, a physical investment of Rs 62,500 crore has taken place resulting in production/sales of more than Rs 6.75 lakh crore and employment generation of about 3,25,000. Exports increased by Rs 2.56 lakh crore by the financial year 2022-23.

Around Rs 2,900 crore was disbursed as incentive under PLI schemes for 8 sectors in FY 2022-23. These 8 sectors are electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing and drones and drone components, etc. The PLI scheme has prompted major smartphone companies such as Foxconn, Wistron and Pegatron to relocate their suppliers to India. As a result, top high-end phones are being manufactured in India. This has resulted in a 20-fold increase in employment and localization of women in IT hardware such as batteries and laptops. Secretary, DPIIT said that the value addition in mobile manufacturing in India is as high as 20 per cent.

The PLI scheme for LSEM along with the existing Phased Manufacturing Program (PMP) has led to 23 per cent and 20 per cent growth in electronics sector and smartphone manufacturing, respectively, which were almost nil in 2014-15. Of the total electronics production of USD 101 billion in FY 2022-23, it accounts for USD 44 billion including USD 11.1 billion as smartphone exports.

Import substitution of 60 per cent has been achieved in the telecom sector and India has become almost self-sufficient in antenna, GPON (Gigabit Passive Optical Network) and CPE (Customer Premises Equipment). Drone sector has seen 7 times increase in turnover due to PLI scheme which covers all MSME startups. Whereas under the PLI scheme for food processing, there has been a significant increase in the sourcing of raw materials from India, which has positively impacted the income of Indian farmers and MSMEs.

Due to PLI scheme, there has been a huge reduction in the import of raw materials in the pharma sector. Unique intermediates and bulk drugs are being manufactured in India including Penicillin-G and transfer of technology has taken place in the manufacture of medical equipment such as (CT Scan, MRI etc.). This shows that the country’s PLI schemes have been a hit, registering a significant increase in production, employment generation and economic growth.

– Kamlesh Pandey

senior journalist and columnist