The government is likely to expand the production-linked incentive (PLI) scheme to cover more high-employment potential sectors and has already rolled out the scheme with an outlay of about Rs. 2 lakh crore for as many as 14 sectors, including food products.
The scheme aims to make domestic manufacturing globally competitive and create global champions in manufacturing, and it is yielding solid results.
The budget for 2023–24 is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1. The PLI scheme is aimed at making Indian manufacturers globally competitive by attracting investment in the areas of core competency and cutting-edge technology, ensuring efficiencies, creating economies of scale, enhancing exports, and making India an integral part of the global supply chain.
According to a statement of the commerce and industry ministry issued on December 16, 650 applications have been approved under 13 schemes so far, and more than 100 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, telecom, white goods, and food processing.
The scheme was specifically designed to boost domestic manufacturing in sunrise and strategic sectors, curb cheaper imports and reduce import bills, improve the cost competitiveness of domestically manufactured goods, and enhance domestic capacity and exports.