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 seen significant investments in the electronics and pharma sectors. According to official data, these two sectors have received nearly 70% of the total ₹10,114 crore disbursed under the scheme in FY25. This development is expected to have a profound impact on the country’s economy, particularly in terms of job creation and growth.
Electronics Sector Emerges as Top Beneficiary
The electronics sector has received the largest share of the PLI funds, with a whopping ₹5,732 crore disbursed in FY25. This is not surprising, given the increasing demand for Made-in-India electronics products globally. The sector has seen significant growth in recent years, driven by the government’s initiatives to promote domestic manufacturing and the growing demand for electronics products.
The PLI scheme has been instrumental in attracting investments in the electronics sector, with many global players setting up manufacturing facilities in India. The scheme offers a fiscal incentive of 4-6% on incremental sales over the base year of 2019-20, which has been a major draw for investors.
Pharma Sector Receives ₹2,328 Crore
The pharma sector is another significant beneficiary of the PLI scheme, receiving ₹2,328 crore in FY25. This is a significant development, given the government’s efforts to promote India as a global pharmaceutical hub. The sector has seen significant growth in recent years, driven by the increasing demand for affordable and high-quality medicines globally.
The PLI scheme has been designed to promote domestic manufacturing in the pharma sector, with an emphasis on research and development, innovation, and quality control. The scheme offers a fiscal incentive of 5-10% on incremental sales over the base year of 2019-20, which has been a major draw for investors.
Other Sectors Also Receive Significant Investments
While the electronics and pharma sectors have received the largest share of the PLI funds, other sectors have also received significant investments. The automobile sector, for instance, has received ₹734 crore, while the textile sector has received ₹644 crore. The food processing sector has also received ₹444 crore, indicating a growing interest in this sector.
Key Takeaways
The PLI scheme has been a major success, with nearly 70% of the funds disbursed to the electronics and pharma sectors. This development is expected to have a profound impact on the country’s economy, particularly in terms of job creation and growth. The scheme has been instrumental in attracting investments in key sectors, and its success is expected to pave the way for similar initiatives in the future.
Conclusion
The PLI scheme has been a game-changer for the Indian economy, particularly in terms of promoting domestic manufacturing and attracting investments. The electronics and pharma sectors have emerged as the top beneficiaries, with the former receiving a significant ₹5,732 crore and the latter receiving ₹2,328 crore. As the scheme continues to evolve and grow, it is expected to play a key role in shaping the country’s economic future.
