Union Budget: What lies ahead for Modi's flagship PLI scheme?
Budget 2024, the spotlight is firmly on the Production-Linked Incentive (PLI) schemes, which have been instrumental in revitalizing the manufacturing sector and strengthening supply chains. The government's proactive steps in enhancing these schemes signal a commitment to bolstering India's economic growth, increasing employment, and positioning Indian industries on the global stage.
In a significant move, the Indian government has hiked the allocation for the PLI scheme to ₹6,200 crore during the interim budget for FY25, marking a 33% increase from the previous year’s estimate of ₹4,645 crore. This substantial boost underscores the government's dedication to supporting manufacturing and supply chains across the 14 sectors currently covered, which include mobile phones, pharmaceuticals, automobiles, and electronic products.
Budget: PLI scheme & the numbers
Since its initiation in 2021, the PLI scheme has attracted investments exceeding ₹1.03 lakh crore, leading to production and sales worth ₹8.61 lakh crore. This has resulted in the creation of over 6.78 lakh jobs, both directly and indirectly. However, it's important to address concerns about limited employment generation in sectors such as leather, garments, handicrafts, and jewelry. These industries hold significant potential for job creation, especially for lower-income households, and should be considered for inclusion in future expansions of the scheme.
Experts emphasize the need to extend the PLI scheme to additional sectors ahead of the Interim Budget.
