Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Production Linked Incentive (PLI) scheme, launched in 2021 to boost domestic manufacturing, has been a significant success in India’s economic growth story. The scheme, which was initially rolled out for 14 key sectors, has seen a significant allocation of funds in the financial year 2024-2025 (FY25). According to official data, the electronics and pharma sectors have emerged as the top beneficiaries, securing nearly 70% of the total ₹10,114 crore disbursed under the scheme.
Breakdown of PLI Funds Allocation
The data reveals that the electronics sector received a massive ₹5,732 crore, accounting for around 56% of the total funds disbursed. The pharma sector, on the other hand, received ₹2,328 crore, making it the second-largest beneficiary of the PLI scheme, with a 23% share.
The remaining 21% of the funds were allocated to the other 12 sectors, including automobiles, textiles, food processing, and leather, among others. The allocation of funds to these sectors ranged from ₹150 crore to ₹500 crore, with some sectors receiving smaller amounts.
PLI Scheme: A Game-Changer for Indian Manufacturing
The PLI scheme is a significant initiative by the Indian government to boost domestic manufacturing and increase the country’s share in global trade. The scheme provides financial incentives to companies that invest in new manufacturing capacities and meet specific performance targets.
The scheme has been designed to promote value addition, improve efficiency, and enhance competitiveness in the manufacturing sector. By providing a financial cushion to companies, the PLI scheme aims to encourage them to invest in research and development, technology upgradation, and capacity expansion.
Impact on the Economy
The allocation of PLI funds to the electronics and pharma sectors is expected to have a significant impact on the Indian economy. The electronics sector, which is a critical component of the country’s manufacturing landscape, is expected to see a significant increase in production and exports.
The pharma sector, which is one of India’s largest export earners, is expected to benefit from the PLI scheme by improving its research and development capabilities, reducing costs, and increasing its presence in the global market.
The PLI scheme is also expected to create new job opportunities, stimulate economic growth, and increase the country’s share in global trade. The scheme’s success will also attract more foreign investment into the country, which will further boost the economy.
Challenges Ahead
While the PLI scheme has been a success, there are still challenges that need to be addressed. One of the major challenges is the competition from other countries, particularly China, which has a well-established manufacturing base.
Another challenge is the need to improve the country’s logistics and infrastructure to support the growth of the manufacturing sector. The lack of quality infrastructure, including roads, ports, and warehouses, can lead to delays and increased costs, which can affect the competitiveness of Indian manufacturers.
Conclusion
In conclusion, the allocation of PLI funds to the electronics and pharma sectors is a significant step forward in the country’s efforts to boost domestic manufacturing and increase its share in global trade. The scheme’s success is expected to have a positive impact on the economy, creating new job opportunities, stimulating economic growth, and increasing the country’s presence in the global market.
As the country moves forward, it is essential to address the challenges that lie ahead, including competition from other countries and the need to improve infrastructure. With the right policies and support, the PLI scheme can continue to be a game-changer for Indian manufacturing and the economy as a whole.
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