The production-linked incentive (PLI) scheme under the Make-in-India programme is expected to attract a capex of approximately ₹3 lakh crore over the next five years, says the Survey. The Survey feels that “It has the potential to generate employment for over 60 lakh in India and increase the share of the manufacturing sector in total capital formation, which currently stands at around 17-20 percent between FY12 and FY20”.
The Survey predicts that there will be a significant reduction in the trade deficit with domestic production substituting imports. Sectors under which the PLI scheme have been announced currently constitute around 40 percent of total imports. “The scheme, spread across 14 sectors, can enhance India’s annual manufacturing capex by 15 to 20 percent from FY23,” says the Survey.
The scheme should benefit the MSME ecosystem. “The anchor units built in every sector will require a new supplier base in the entire value chain. Most of these ancillary units will be built in the MSME sector,” says the Survey.
As of December 31, 2022, 717 applications have been approved under 14 schemes. More than 100 MSMEs are among the PLI beneficiaries in sectors, such as bulk drugs, medical devices, telecom, white goods and food processing.
‘Make in India 2.0’ is now focusing on 27 sectors, which include 15 manufacturing sectors and 12 service sectors. Among these, 24 sub-sectors have been chosen keeping in mind the Indian industries’ strengths and competitive edge, the need for import substitution, the potential for export, and increased employability. “Efforts are on to boost the growth of the sub-sectors in a holistic and coordinated manner,” the Survey says.
