According to a Crisil research, the Production Linked Incentive (PLI) plan will contribute for 13-15 percent of average annual investment spending in major industrial sectors over the next three to four years.

PLI has been announced for 15 sectors since its inception in March 2020, comprising government incentives worth Rs 1.93 lakh billion. The remainder will be spent on import localization, with 50-60 percent going to industries with a focus on domestic manufacture and export. In a report released on Wednesday, the rating agency stated that "implementation of the Production Linked Incentive (PLI) scheme will result in a potential capital expenditure (capex) of Rs 2.5-3 lakh crore over the scheme period and will account for 13-15 percent of average annual investment spending in key industrial sectors over the next 3-4 years."

PLI is now well positioned for a quick on-the-ground implementation, with about 60 percent of the capex already approved and major spending planned for FY23-FY26. The capex has been granted for ten industries, according to the statement. While capex in mobile, pharma, and telecom has already begun, the agency added that capex in capital-intensive industries like as automobiles and solar photovoltaics, which account for 70 percent of the promised investment, will begin in April 2022.

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