PLI Scheme to include Toys, Leather and New Age e-Bikes

Toys, leather and new age e-bikes will be added to the production-linked incentive (PLI) scheme that currently covers 14 sectors, a top official said on Tuesday, making a fresh move to expand manufacturing and creating jobs in these sectors.

RK Singh, secretary, department for promotion of industry and internal trade (DPIIT), said these new sectors will be within the Rs 1. 97-lakh-crore PLI allocation made three years ago when it was launched. Two of them, toys and leather, are being added with the aim to create largescale employment.

“Till now 733 PLI applications have been approved in the 14 sectors with expected investment of Rs 3. 6 lakh crore. Over 170 MSMEs are among the beneficiaries in sectors like bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones. Actual investment of Rs 62,500 crore has been realised till March 2023, which has resulted in incremental production/sale of Rs 6. 7 lakh crore and employment generation for over 3. 2 lakh people. Exports have been boosted by Rs 2. 5 lakh crore till 2022-23,” said Singh.

Incentive amount of Rs 2,900 crore was disbursed in FY23 for eight sectors — large scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharma, telecom, food processing and drone. Claims were received for Rs 3,400 crore.

“Due to PLI schemes, there has been a significant 76% increase in FDI under the manufacturing sector in 2021-22 at $21. 3 billion over FY21’s $12. 1 billion. Medical appliances saw 91% hike in FDI in that period, followed by pharma at 46% and food processing at 26%,” said Singh.

The government credits this scheme with major smartphone manufacturers shifting suppliers like Foxconn, Wistron and Pegatron to India. “The PLI scheme for LSEM along with the existing phased manufacturing programme has led to increased value addition by 23% and 20% in electronics and smartphone manufacturing, respectively, from negligible in 2014-15. Of the total $101-billion total electronics production in 2022-23, smartphones contributed $44 billion including $11. 1 billion as exports,” said a DPIIT official.

Import substitution of 60% has been achieved in the telecom sector and India has become almost self-reliant in antennae. The drone sector has seen a sevenfold jump in turnover due to PLI.

“Eight sectors are seeing a very good response. We expect other sectors to also pick up. There are also talks on to bring some more sectors under PLI,” said an official.