Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Indian government’s efforts to boost domestic manufacturing have yielded significant results, with the electronics and pharmaceutical sectors emerging as the top beneficiaries of the Production Linked Incentive (PLI) scheme in FY25. According to official data, these two sectors received nearly 70% of the total ₹10,114 crore disbursed under the scheme.
Launched in 2021, the PLI scheme was designed to encourage domestic manufacturing and reduce dependence on imports. Initially, the scheme was rolled out for 14 key sectors, including electronics, pharmaceuticals, automotive, and specialized steel. The scheme offers financial incentives to companies that meet specific production targets, with the aim of increasing domestic production and reducing imports.
The data released by the government reveals that the electronics sector received the largest share of PLI funds, with ₹5,732 crore being disbursed to companies in this sector. This is not surprising, given the growing importance of the electronics industry in India’s economy. The sector has seen significant growth in recent years, driven by the increasing demand for electronics products such as smartphones, laptops, and televisions.
The pharmaceutical sector, on the other hand, received ₹2,328 crore under the PLI scheme. This is a significant amount, considering the sector’s importance in India’s healthcare ecosystem. The pharmaceutical industry is a crucial sector in India, with the country being one of the largest producers of generic medicines in the world.
The top beneficiaries of the PLI scheme in the electronics sector included companies such as Foxconn, Wistron, and Flex, which received significant amounts of funding to expand their manufacturing operations in India. In the pharmaceutical sector, companies such as Sun Pharma, Dr. Reddy’s Laboratories, and Cipla received funding to enhance their production capacity and expand their product range.
The PLI scheme has been instrumental in boosting domestic manufacturing in India, and the data released by the government highlights its success. The scheme has not only attracted new investments but also encouraged existing companies to increase their production capacity and expand their operations.
The government’s efforts to boost domestic manufacturing have been driven by the need to reduce the country’s dependence on imports. India’s trade deficit has been a major concern for the government in recent years, and the PLI scheme is seen as a key initiative to reduce this deficit. The scheme has also been designed to create jobs and stimulate economic growth, with the government aiming to create over 10 lakh new jobs in the next few years.
The success of the PLI scheme has also led to a increase in foreign direct investment (FDI) in India. The scheme has attracted significant investments from global companies, including those from the United States, Europe, and Asia. The increased FDI has not only boosted domestic manufacturing but also created new opportunities for Indian companies to collaborate with global players.
In conclusion, the data released by the government highlights the success of the PLI scheme in boosting domestic manufacturing in India. The electronics and pharmaceutical sectors have emerged as the top beneficiaries of the scheme, with nearly 70% of the total funds being disbursed to these sectors. The scheme has been instrumental in attracting new investments and encouraging existing companies to increase their production capacity and expand their operations. As the government looks to build on this success, it is likely that the PLI scheme will continue to play a key role in India’s economic growth story.
