Govt nearly doubles PLI scheme share of five key industry segments
- IBEF
- February 5, 2024
The Government has significantly bolstered the allocation for production-linked incentive (PLI) schemes across key industries in the Interim Budget for FY25, increasing the funding by nearly 81% from the Revised Estimate of FY24. This substantial increase, totaling US$ 1,830 million (Rs. 15,198 crore), spans over eight PLI schemes, including mobile phones, IT hardware, pharmaceuticals, food processing, telecom hardware, and auto components. Officials from the Department for Promotion of Industry and Internal Trade (DPIIT) have indicated that the actual disbursements for FY24 are anticipated to surpass the budgeted amount of US$ 1,325 million (Rs 11,000 crore). While the budgetary figures serve as estimates, allocating additional funds within the overall PLI budget remains flexible, subject to cabinet approval.
Noteworthy is the surge in allocations across various sectors, particularly in mobile devices, witnessing a 36% increase from the Revised Estimate of FY24. The PLI scheme for mobile devices is particularly interesting, featuring Apple Inc's remarkable performance beyond stipulated targets. Additionally, the Government is emphasizing support for electric vehicles, given their relatively low market penetration. The allocation for electric two-wheelers and four-wheelers has surged over seven-fold, reaching US$ 421 million (Rs 3500 crore), reflecting the Government's commitment to bolstering this segment. This strategic increase in PLI allocations underscores the Government's proactive approach to incentivizing manufacturing across critical sectors and fostering economic growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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