PLI Scheme for electronics manufacturing attracts Rs 6887 crore investments till June 2023

Investments in PLI scheme for large-scale electronics exceed govt estimate

The production-linked incentive (PLI) scheme for large-scale electronics manufacturing has attracted investments of Rs 6887 crore till June 2023. The number has breached the ministry’s target which had aimed for an investment of Rs 5,488 crore till the end of FY24.

The sector has also recorded production of over Rs 3.3 lakh crore and employment generation of around 62,000, according to the latest data shared by the Ministry of Electronics and Information Technology in Rajya Sabha on August 11.

Exports due to the scheme have been reported at Rs 1.56 lakh crore till June 23. The ministry has set a target to export items worth over Rs 2.63 lakh crore in FY24.

Launched in 2021, the output-linked programme covers 14 sectors such as telecommunication, white goods, textiles, and manufacturing of medical devices with an outlay of Rs 1.97 lakh crore.

It offers financial incentives to companies that manufacture products in India in the 14 said sectors. The incentives are based on parameters such as incremental sales, export generation, and job creation.

According to official data, incentives amounting to Rs 2,900 crore have been disbursed in FY23 under PLI schemes for eight sectors, which include large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, and drones and drone components.

The commerce ministry is projecting a near-350 percent jump in disbursals to Rs 13,000 crore, significantly higher than the Rs 2,900 crore given so far, Rajesh Kumar Singh, Secretary to the Department for Promotion of Industry and Internal Trade (DPIIT), said at a briefing on August 11.

Also read: Revamp of 6 lagging PLI schemes likely as government plans review