Indian Economy News

PLI schemes to boost revenue of 720 companies by Rs. 39,35,007 crore (US$ 459 billion) over next five years: Goldman Sachs

  • IBEF
  • January 6, 2025

The Indian government's Production-Linked Incentive (PLI) schemes are expected to generate an additional Rs. 39,35,007 crore (US$ 459 billion) in revenue over the next five-six years, benefiting over 720 companies. These initiatives aim to strengthen manufacturing capabilities, reduce import dependency, boost exports, and create jobs. Notable sectors include energy transition, where ACC batteries are projected to generate Rs. 2,11,753 crore (US$ 24.7 billion) in revenue, supported by Rs. 19,718 crore (US$ 2.3 billion) in incentives. The automobile sector has achieved incremental sales of Rs. 11,145 crore (US$ 1.3 billion). The solar photovoltaic module sector expects Rs. 5,53,816 crore (US$ 64.6 billion) in revenue. Other areas, such as green hydrogen, electronics, IT hardware, and pharmaceuticals, are also substantially growing.

However, growth has been uneven across sectors. As of August 2024, total incremental sales across all PLI sectors stood at Rs. 12,85,950 crore (US$ 150 billion), with telecom, pharmaceuticals, and white goods leading the way. In contrast, sectors like medical devices, textiles, and auto components have lagged. To address these challenges, the government is refining the allocation process and adjusting approval criteria to enhance local value addition and improve incentive disbursements. With production expected to ramp up significantly by H1 FY25, a higher disbursement of incentives is anticipated in the coming years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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