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 game-changer for India’s economy. The scheme, which offers incentives to companies that manufacture specific products in the country, has been instrumental in attracting foreign investment and promoting indigenous production. In FY25, the PLI scheme disbursed a whopping ₹10,114 crore to various sectors, and a closer look at the data reveals that electronics and pharma industries were the top beneficiaries, securing nearly 70% of the total funds.
According to official data, the electronics sector received the largest chunk of the PLI funds, with a whopping ₹5,732 crore disbursed to companies in this sector. This is not surprising, given the growing demand for electronics products in India, driven by the increasing consumption of smartphones, laptops, and other digital devices. The electronics industry is also a significant contributor to India’s GDP, with the sector valued at over ₹2.5 lakh crore.
The pharma sector, on the other hand, received ₹2,328 crore under the PLI scheme. This is also not unexpected, given the importance of the pharma industry in India’s healthcare sector. The country is home to over 300 generic drug manufacturers, and the pharma industry is a significant contributor to India’s exports, with the sector valued at over ₹1.5 lakh crore.
The PLI scheme was initially rolled out for 14 key sectors, including automobiles, textiles, and pharmaceuticals. The scheme offers incentives to companies that meet certain production targets, with the incentive amount calculated based on the production value of the eligible products. The scheme has been a major draw for foreign investors, with several multinational companies announcing significant investments in India under the PLI scheme.
The data on the PLI scheme’s disbursed funds is a testament to the scheme’s success in promoting domestic manufacturing in India. The scheme has helped to create jobs, promote innovation, and increase India’s share in global trade. The fact that electronics and pharma industries were the top beneficiaries of the PLI scheme is also a reflection of the growing importance of these sectors in India’s economy.
The PLI scheme has also helped to reduce India’s dependence on imports, with the country’s domestic production of electronics and pharma products increasing significantly in recent years. The scheme has also helped to promote the development of the entire value chain, from raw material procurement to finished goods production, creating a significant multiplier effect on the economy.
The success of the PLI scheme is also reflected in the growth of India’s exports. In FY25, India’s exports grew by over 15%, driven largely by the growth of exports from the electronics and pharma sectors. The PLI scheme has also helped to increase India’s share in global trade, with the country’s exports now accounting for over 2% of global trade.
In conclusion, the PLI scheme has been a major success story for India’s economy, with electronics and pharma industries securing nearly 70% of the total funds disbursed under the scheme. The scheme has helped to promote domestic manufacturing, create jobs, and increase India’s share in global trade. As the scheme continues to evolve, it is likely to play an increasingly important role in promoting India’s economic growth and development.
