Budget 2024: Will Finance Minister Sitharaman Expand the PLI Scheme to More Sectors?: Finance Minister Nirmala Sitharaman has hinted at a conservative approach for the upcoming interim budget. Despite her assurance of no "spectacular announcement," anticipation remains high among various sectors. The eagerly awaited budget speech scheduled for February 1 has piqued the interest of conglomerates and the general public alike.
Known for surprises, the Modi government might unveil updates on the Production-Linked Incentive (PLI) scheme. Introduced post-COVID-19, the PLI initiative aimed to bolster domestic manufacturing and enhance global competitiveness while primarily focusing on job creation—a dire need for India's growth. Speculations are rife about the scheme possibly extending to new sectors, potentially becoming a major highlight of the budget speech.
Kicking off the year, the Centre prolonged the Production-Linked Incentive (PLI) Scheme for Automobile and Auto Components with certain amendments. These changes seek to streamline and offer more flexibility to the program, extending the incentive for five consecutive fiscal years, beginning from 2023-24.
Recent statistics on the PLI schemes showcase encouraging results. According to the Commerce and Industry Ministry, these initiatives across 14 sectors attracted over Rs 95,000 crore in investments until September of the previous year. Additionally, approvals for 746 applications were granted by November 2023 under these schemes.
The sectors encompassed by the PLI scheme span electronics, telecommunications, pharmaceuticals, white goods (including AC and LED light components), and textiles.
The ministry provided an update stating, "746 applications were approved until November 2023. PLI units are operational in more than 150 districts across 24 states. Investments of over Rs 95,000 crore were reported until September, resulting in production/sales of Rs 7.80 lakh crore and generating employment (direct & indirect) for over 6.4 lakh individuals." Further, it noted that around Rs 2,900 crore in incentives had been disbursed in 2022-23.
Highlighting the success of these schemes, top government officials mentioned the accomplishment of objectives like localizing medical technologies, bulk drugs, electronics, and specialty steel.