Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Indian government’s Production Linked Incentive (PLI) scheme, launched in 2021 to boost domestic manufacturing, has yielded significant results in its first year of operation. According to official data, the electronics and pharma sectors have emerged as the top beneficiaries, receiving nearly 70% of the total ₹10,114 crore disbursed under the scheme in FY25.
The PLI scheme, initially rolled out for 14 key sectors, has been designed to incentivize domestic manufacturers to increase their production and exports. The scheme offers financial incentives to eligible companies that meet specific production and export targets. The government’s goal is to reduce the country’s reliance on imports and increase its share in the global market.
As per the latest data, the electronics sector has received the largest chunk of funds, with ₹5,732 crore being disbursed to eligible companies. The pharma sector, on the other hand, received ₹2,328 crore, making it the second-largest beneficiary of the PLI scheme.
Other sectors, such as the automotive and textile sectors, have also received significant funds under the scheme. The automotive sector received ₹641 crore, while the textile sector received ₹514 crore. However, these sectors have received significantly less funding compared to the electronics and pharma sectors.
The PLI scheme has been widely praised for its ability to attract foreign investment and boost domestic manufacturing. The scheme has also helped create new employment opportunities and increased the competitiveness of Indian industries in the global market.
The electronics sector, in particular, has been a major beneficiary of the PLI scheme. The sector has seen significant growth in recent years, driven by the increasing demand for electronic goods such as smartphones, laptops, and televisions. The scheme has incentivized companies to set up new manufacturing facilities and expand their existing ones, leading to increased production and exports.
The pharma sector has also seen significant growth under the PLI scheme. The sector has been a major contributor to India’s exports, and the scheme has helped companies to increase their production and exports of pharmaceutical products.
The PLI scheme has also helped to attract foreign investment in India. Several multinational companies have set up manufacturing facilities in the country, attracted by the scheme’s incentives and the country’s large domestic market. The scheme has also helped to increase the competitiveness of Indian industries in the global market, making them more attractive to foreign investors.
In conclusion, the PLI scheme has been a major success in its first year of operation, with the electronics and pharma sectors emerging as the top beneficiaries. The scheme has helped to attract foreign investment, boost domestic manufacturing, and increase the competitiveness of Indian industries in the global market. As the scheme continues to evolve, it is likely to have a significant impact on India’s economy and its position in the global market.
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