Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Production Linked Incentive (PLI) scheme, launched in 2021 to boost domestic manufacturing in India, has been a significant success story. The latest data released by the government reveals that the electronics and pharma sectors have emerged as the top beneficiaries, collectively receiving nearly 70% of the ₹10,114 crore disbursed under the scheme in FY25.
The PLI scheme was initially rolled out for 14 key sectors, aimed at promoting domestic manufacturing and reducing dependence on imports. The scheme offers incentives to companies that meet specific production targets, with the idea of creating a self-sustaining ecosystem and making India a global manufacturing hub.
According to the official data, the electronics sector received the lion’s share of the PLI funds, accounting for ₹5,732 crore, which is approximately 57% of the total disbursed amount. The pharma sector came in second, receiving ₹2,328 crore, making it the second-largest beneficiary of the scheme.
Other sectors that received significant amounts under the PLI scheme include textiles, which received ₹623 crore, and the automotive sector, which got ₹444 crore. The aerospace and defence sectors received ₹236 crore and ₹144 crore, respectively.
The PLI scheme has been instrumental in driving growth in the manufacturing sector, which was one of the hardest hit during the pandemic. The scheme’s success is evident in the fact that the share of manufacturing in India’s GDP has increased from 17% in 2020-21 to 18% in 2022-23.
The electronics sector, in particular, has been a bright spot, with companies like Foxconn, Wistron, and Samsung setting up manufacturing facilities in India. The sector’s growth is driven by the increasing demand for electronics devices, particularly in the areas of smartphones, laptops, and tablets.
The pharma sector has also benefited significantly from the PLI scheme, with companies like Sun Pharma, Dr. Reddy’s, and Cadila Healthcare expanding their production capacities. The sector’s growth is driven by the increasing demand for generic medicines and the government’s efforts to promote domestic production.
The success of the PLI scheme has also led to an increase in foreign investment in India. According to the data, foreign companies have invested over ₹1 lakh crore in India under the scheme, creating a significant number of jobs and driving economic growth.
The PLI scheme has been praised by industry experts and analysts, who see it as a bold step towards promoting domestic manufacturing in India. The scheme’s success has also led to a reduction in imports, with the trade deficit shrinking significantly over the past few years.
However, some experts have cautioned that the PLI scheme is not without its challenges. One of the major concerns is the lack of transparency in the scheme’s implementation, which has led to allegations of favoritism and corruption.
Another challenge is the high cost of production in India, which can make it difficult for companies to compete with international peers. The government has acknowledged these challenges and has taken steps to address them, including implementing measures to reduce costs and improve the business environment.
In conclusion, the data released by the government reveals that the electronics and pharma sectors have emerged as the top beneficiaries of the PLI scheme in FY25. The scheme’s success is a testament to the government’s efforts to promote domestic manufacturing in India and reduce dependence on imports. While there are challenges to be addressed, the PLI scheme has the potential to drive significant growth in the manufacturing sector and make India a global manufacturing hub.
