India’s Production Linked Incentive (PLI) schemes continue to attract strong industry interest, with 35 companies committing ₹25,200 crore in specialty steel alone. Backed by substantial incentives and policy support, the initiative is driving investments, production, exports, and job creation across 14 key sectors
Around 35 companies have expressed interest in the second round of the Production Linked Incentive (PLI) scheme for specialty steel, committing a total investment of ₹25,200 crore, according to the Ministry of Commerce and Industry. The Ministry of Steel is currently in the process of selecting these companies and signing Memorandums of Understanding (MoUs) with them. An incentive payout of ₹3,600 crore is estimated for these projects, with the Ministry of Steel expecting disbursement of ₹2,000 crore by the end of the scheme’s tenure.
The PLI scheme has been extended to 14 key sectors to boost India’s manufacturing capabilities and exports. So far, 764 applications have been approved under the scheme. Among the beneficiaries are 176 Micro, Small, and Medium Enterprises (MSMEs) across sectors such as Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom, White Goods, Food Processing, Textiles, and Drones.
As of November 2024, actual investments under PLI schemes across sectors stand at approximately ₹1.61 lakh crore (US$ 18.72 billion), generating production and sales worth ₹14 lakh crore (US$ 162.84 billion). This is close to the target of ₹15.52 lakh crore in production by FY 2024-25. Additionally, over 11.5 lakh jobs—both direct and indirect—have been created through these initiatives.
The PLI schemes have also led to exports exceeding ₹5.31 lakh crore (US$ 61.76 billion), with major contributions coming from sectors like Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom & Networking Products.
So far, incentives amounting to around ₹14,020 crore have been disbursed across 10 sectors, including Electronics, IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Automobiles & Auto Components, Telecom, Food Processing, White Goods, and Drones.
According to the ministry, project implementation timelines range from two to three years depending on the manufacturing type, and incentive claims are generally made after the first year of production. All approvals are granted through a transparent mechanism, the ministry emphasized.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.