Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Indian government has released data highlighting the distribution of funds under the Production Linked Incentive (PLI) scheme for the financial year 2024-2025. According to the data, electronics and pharmaceutical industries have emerged as the top beneficiaries, securing a whopping 70% of the total funds disbursed.
The PLI scheme, launched in 2021, aims to boost domestic manufacturing in key sectors by providing incentives to companies that invest in research and development, technology, and capacity expansion. Initially, the scheme was rolled out for 14 sectors, including automobiles, electronics, pharma, and textiles, among others.
As per the official data, the electronics sector received the largest chunk of funds, totaling ₹5,732 crore, which accounts for approximately 56.7% of the total funds disbursed. The pharma sector, on the other hand, received ₹2,328 crore, making it the second-largest beneficiary, accounting for around 23% of the total funds.
The remaining 21% was distributed among the other sectors, including automobiles, textiles, and food processing, among others.
The PLI scheme has been a significant boost to the electronics and pharma industries, which have been growing rapidly in recent years. The scheme has not only attracted new investments but also encouraged existing companies to scale up their production and invest in research and development.
The electronics industry has been a significant driver of growth in India, with the sector accounting for around 2.5% of the country’s GDP. The industry has been growing at a compound annual growth rate (CAGR) of around 10% in recent years, driven by factors such as increasing demand for smartphones, laptops, and other electronic devices.
The pharma industry has also been a major growth driver, with the sector accounting for around 3% of India’s GDP. The industry has been growing rapidly, driven by increasing demand for generic medicines and increasing exports.
The PLI scheme has been designed to encourage domestic manufacturing and reduce dependence on imports. The scheme provides incentives to companies that invest in research and development, technology, and capacity expansion.
The scheme has been successful in attracting new investments and encouraging existing companies to scale up their production. The scheme has also helped to reduce dependence on imports and increase the country’s self-reliance in critical sectors.
The success of the PLI scheme is evident from the fact that it has attracted investments worth over ₹1 lakh crore in the past three years. The scheme has also helped to create lakhs of jobs and increase the country’s exports.
The government’s decision to provide a significant chunk of funds under the PLI scheme to the electronics and pharma industries is a testament to the importance of these sectors in the country’s economy. The government’s focus on these sectors is expected to drive growth and create new opportunities for investment and employment.
In conclusion, the PLI scheme has been a significant success, and the government’s decision to provide a significant chunk of funds to the electronics and pharma industries is expected to drive growth and create new opportunities for investment and employment. The scheme has been designed to encourage domestic manufacturing and reduce dependence on imports, and its success is a testament to the government’s commitment to promoting the country’s economy.
