Electronics manufacturing and auto get the best of Budget spending on PLI scheme
The Union Budget 2023-24 has put aside US$ 988 million (Rs. 8,083 crores) for the production-linked incentive schemes (PLI), where the bulk of the money is going for large-scale electronics manufacturing, which includes mobile devices, pharma, auto and auto components, and food processing.
Eight of the 14 PLIs covered in these segments account for 99% of the money the Budget earmarked for the schemes across government ministries and departments.
The allocation is a three-fold jump from the revised Budget estimates for these schemes in FY23 which is fixed at US$ 319 million (Rs. 2,616 crores). The bulk of the money in FY24 PLI schemes worth US$ 550 million (Rs. 4,499 crores) is for large-scale electronics manufacturing and the pharma sector has got the second largest PLI allotment of US$ 146 million (Rs. 1,200 crores). The government’s flagship programme to encourage manufacturing is moving quickly and by the December end, over 717 applications had been approved for 14 PLI schemes. The 14 PLIs have to make a total investment of US$ 32 billion and generate revenues of US$ 65 billion.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.