Companies that availed of production-linked incentives invested as much as Rs 32,500 crore in the first half of the current fiscal year, taking the total investments enabled by the performance-linked sops to over Rs 95,000 crore, official sources said on Tuesday.
In the first six months of FY24, the PLI-supported units achieved incremental sales and exports to the tune of Rs 1.05 trillion and Rs 64,000 crore respectively, according to the sources from the department for promotion of industry and internal trade.
Of 14 PLI schemes unveiled so far, the most successful ones so far have been electronics (including smart phones), advanced chemistry cells, bulk drugs, medical devices, pharmaceuticals, automobiles, white goods and drones.
These schemes have been rolled out since March 2020.
Since the beginning of the scheme, the PLI beneficiaries have achieved incremental production and sales of Rs 7.80 trillion and exports of Rs 3.2 trillion.
While as many as 746 applications across the 14 sectors have been approved for incentives thus far, some of the sectors are yet to take off include specality steel, solar modules and food processing. Laptop manufacturing sector is seen to have picked up of late, under a PLI scheme for the sector.
The total outlay for the schemes announced thus far is envisaged at Rs 1.97 trillion
There has been a value addition of 20% in mobile manufacturing within a period of 3 years, DPIIT officials said. “This compares well with competition. Vietnam achieved 18% value addition over 15 years and China achieved 49% value addition in over 25 years,” an official said.
Of the $ 101 billion total electronics production in FY 2022-23, smartphones constitute $ 44 billion, including $ 11.1 billion as exports.
In April-September of this financial year the smartphone exports increased 73.48% on year to $5.6 billion. Exports of electronics goods increased 27.62% to $13.1 billion in the first six months of the fiscal year. This growth came on top of the excellent performance in FY23 when exports had grown 50% on year to $23.5 billion.
Import substitution of 60% has been achieved in the Telecom sector and India has become almost self–reliant in Antennae, GPON (Gigabit Passive Optical Network) and CPE (Customer Premises Equipment). There has been a significant reduction in imports of raw materials in the Pharma sector. Unique intermediate materials and bulk drugs are being manufactured in India including Penicillin-G, and transfer of technology has happened in manufacturing of Medical Devices such as CT scan and MRI.
Drones sector has seen a seven-fold jump in turnover, which consists of all MSME Startups. Under the PLI scheme for food processing, sourcing of raw materials from India has seen a significant increase.