Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Production Linked Incentive (PLI) scheme, launched by the Indian government in 2021, has been showing promising results in boosting domestic manufacturing. The scheme, aimed at promoting high-value manufacturing in the country, has been disbursing incentives to eligible companies. The latest data released by the government reveals that the electronics and pharma sectors have been the top beneficiaries, receiving nearly 70% of the total funds disbursed under the scheme in FY25.
According to official data, the electronics sector received ₹5,732 crore, while pharma received ₹2,328 crore, making them the top beneficiaries of the PLI scheme. This is a significant portion of the total ₹10,114 crore disbursed under the scheme in FY25.
The PLI scheme was initially rolled out for 14 key sectors, including automotive, pharma, electronics, and textiles, among others. The scheme aims to promote domestic manufacturing by offering incentives to companies that invest in setting up new production units or expanding existing ones. The government offers a certain percentage of the production value as an incentive to eligible companies, thus encouraging them to increase their production levels and contribute to the country’s GDP.
The government’s decision to focus on the electronics and pharma sectors is not surprising, given the significant role they play in the country’s economy. The electronics sector is a key driver of the country’s manufacturing sector, with a significant presence of global giants like Samsung, Apple, and Vivo. The sector has been growing rapidly in recent years, driven by increasing demand for smartphones, laptops, and other electronic devices.
The pharma sector, on the other hand, is a critical component of the country’s healthcare ecosystem. The sector has been growing rapidly, driven by increasing demand for medicines and medical devices. The government’s focus on the pharma sector is aimed at promoting domestic production of medicines and reducing the country’s dependence on imports.
The success of the PLI scheme in attracting investments in the electronics and pharma sectors is a testament to the government’s efforts to promote domestic manufacturing. The scheme has been designed to provide a level-playing field to domestic companies, allowing them to compete with global giants. The government has also been taking steps to improve the business environment, including simplifying regulatory procedures and reducing bureaucratic hurdles.
The PLI scheme has been receiving positive feedback from industry stakeholders, with many companies expressing their satisfaction with the scheme. “The PLI scheme has been a game-changer for us. It has helped us to increase our production levels and reduce our dependence on imports,” said a senior executive of a leading electronics company.
The government’s focus on the electronics and pharma sectors is also expected to create job opportunities and improve the country’s economic growth. The sector is expected to create millions of jobs in the coming years, both directly and indirectly. The government’s efforts to promote domestic manufacturing are also expected to improve the country’s trade balance, as the country becomes less dependent on imports.
However, the success of the PLI scheme is not without its challenges. The scheme has been criticized for being skewed in favor of large companies, with smaller players struggling to access the benefits. The government has also been criticized for not providing adequate support to companies that are struggling to meet the production targets.
Despite these challenges, the PLI scheme has been a significant success, and the government’s focus on the electronics and pharma sectors is expected to continue in the coming years. The scheme has the potential to transform the country’s manufacturing sector, making it a key driver of the country’s economic growth.
In conclusion, the PLI scheme has been a significant success, with the electronics and pharma sectors receiving nearly 70% of the total funds disbursed under the scheme in FY25. The government’s focus on these sectors is expected to create job opportunities, improve the country’s economic growth, and reduce the country’s dependence on imports. While there are challenges to be addressed, the PLI scheme has the potential to transform the country’s manufacturing sector, making it a key driver of the country’s economic growth.
