Under the 14 production-linked incentive (PLI) schemes, compnanies have spent more than Rs. 51,200 crore over the past 18 years. According to data reviewed  The Financial Express, this information is based on public records and shows a substantial influx of investments in these schemes.

This represents an average of less than four years and 20% of the total investments made by the 588 selected enterprises, suggesting a consistent trend in line with expectations.  As per  the data, the government has only provided incentives of Rs. 2,400 crore under the PLI scheme, or 1.2% of the Rs. 1,97 trillion planned over a five- to seven-year period.

Only two programmes viz., mobile phones (RS1,500 crore) and pharmaceuticals ( Rs.850 crore), have accrued the required amount in incremental sales to qualify for these incentives.  In the best-case scenario, by 2030, the PLI incentives will not have been used more than Rs. 1.5 trillion. This is partially caused by the requirements that manufacturers must meet in order to qualify, as per report

According to the data, the majority of investments have been made in pharmaceutical drugs worth Rs. 16,199 crore, or around 35% of the expected investments by 55 firms of Rs. 45,765 crore. 

While specialty steel has not yet seen any investment, mobile manufacturing companies have made investments of nearly Rs. 5,124 crore, or about 45% of their planned investments. In March 2023, the Ministry of Steel signed 57 MoUs for speciality steel under the PLI scheme with 27 firms. The government has given Rs. 6,322 crore under the PLI scheme to revitalise the steel industry.

Similarly, 3 companies namely Reliance New Energy Solar,  Rajesh Exports and Ola Electric Mobility, have not made any progress under the advanced chemistry cell battery storage PLI scheme. 

Aviation Ministry disbursed Rs 30 cr in FY 2022-23 under PLI Scheme for drones

The global economic recovery continues, but the going is getting rough