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 driver of growth for various sectors in India. The scheme, which was initially rolled out for 14 key sectors, has seen a significant allocation of funds to the electronics and pharma sectors in the financial year 2024-25. According to official data, these two sectors received a whopping 70% of the total funds disbursed under the scheme, making them the top beneficiaries.
Funds Allocation: A Breakdown
The data reveals that the electronics sector received the largest chunk of funds, amounting to ₹5,732 crore, which is roughly 56.6% of the total funds disbursed. The pharma sector, on the other hand, received ₹2,328 crore, making up around 23% of the total funds. These two sectors together accounted for a staggering 70% of the total funds disbursed under the PLI scheme in FY25.
The remaining 30% of the funds were allocated to other sectors, including automotive, textiles, and food processing, among others. While these sectors may not have received as much funding as the electronics and pharma sectors, they still benefited significantly from the scheme.
Why Electronics and Pharma?
So, why did the electronics and pharma sectors receive such a large share of the funds? There are several reasons for this. Firstly, both sectors have been identified as key drivers of growth for the Indian economy. The electronics sector, in particular, has been growing rapidly in recent years, driven by the increasing demand for smartphones, laptops, and other electronic devices. The pharma sector, on the other hand, has been a significant contributor to India’s economy, with the country being one of the largest producers of generics in the world.
Secondly, both sectors have a high potential for growth, and the government is keen to encourage domestic manufacturing to reduce dependence on imports and increase exports. The PLI scheme is designed to achieve this goal by providing incentives to companies that invest in manufacturing and production.
Impact on the Economy
The allocation of funds to the electronics and pharma sectors is likely to have a significant impact on the Indian economy. The electronics sector, in particular, is expected to create a large number of jobs and drive growth in other sectors, such as components and accessories. The pharma sector, on the other hand, is expected to increase India’s share in the global generics market and reduce dependence on imports.
The PLI scheme is also expected to increase foreign direct investment (FDI) in these sectors, as companies from around the world are likely to be attracted to India’s growing manufacturing capabilities. This, in turn, is expected to increase exports and improve the country’s trade balance.
Conclusion
In conclusion, the allocation of funds to the electronics and pharma sectors under the PLI scheme is a significant step towards promoting domestic manufacturing and driving growth in these sectors. While other sectors may not have received as much funding, they still benefited from the scheme. The government’s efforts to promote domestic manufacturing are likely to have a significant impact on the Indian economy, creating jobs, driving growth, and increasing exports.
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