Electronics & Pharma Secure 70% of FY25 PLI Funds: Govt Data
The Production Linked Incentive (PLI) scheme, launched by the Indian government in 2021, has been a game-changer for the country’s manufacturing sector. The scheme aims to boost domestic production and reduce dependence on imports by offering incentives to companies that manufacture goods in India. The latest data released by the government reveals that the electronics and pharma sectors have been the top beneficiaries of the PLI scheme in FY25, securing nearly 70% of the total funds disbursed.
According to official data, the electronics sector received a whopping ₹5,732 crore, while the pharma industry received ₹2,328 crore. These two sectors together accounted for approximately 70% of the total ₹10,114 crore disbursed under the PLI scheme during FY25. This massive allocation of funds is a testament to the government’s commitment to supporting the growth of these critical sectors.
The PLI scheme was initially rolled out for 14 key sectors, including automobiles, pharma, textiles, and electronics, among others. The scheme offers a financial incentive to companies that manufacture goods in India, with the aim of increasing their domestic production and reducing reliance on imports. The incentive is provided in the form of a percentage of the incremental sales of goods produced in India.
The data released by the government highlights the success of the PLI scheme in attracting investments and driving growth in the electronics and pharma sectors. The electronics sector, in particular, has been a major beneficiary of the scheme, with companies such as Samsung, Foxconn, and Wistron receiving significant allocations of funds.
The pharma sector, too, has seen a significant increase in domestic production and exports, thanks to the PLI scheme. The sector has been a major contributor to India’s economy, with the country emerging as one of the largest exporters of pharmaceutical products in the world.
The PLI scheme has also led to the creation of new jobs and investment opportunities in the country. The data released by the government reveals that the scheme has generated employment opportunities for over 1.5 lakh people in the manufacturing sector.
While the PLI scheme has been a major success, there are still several challenges that the government needs to address to ensure its continued success. One of the major challenges is the need to increase the allocation of funds to other sectors, such as textiles and automobiles, which have also been major beneficiaries of the scheme.
Another challenge is the need to improve the Ease of Doing Business (EoDB) framework in the country. The PLI scheme requires companies to comply with various regulations and norms, which can be time-consuming and bureaucratic. Simplifying the EoDB framework can help companies to focus on their core business activities and increase their competitiveness.
In conclusion, the data released by the government highlights the success of the PLI scheme in boosting domestic manufacturing and reducing dependence on imports. The electronics and pharma sectors have been the top beneficiaries of the scheme, securing nearly 70% of the total funds disbursed. To ensure the continued success of the scheme, the government needs to address the challenges facing the scheme and increase the allocation of funds to other sectors.
