Toys, footwear, components for new age bicycles to come under PLI scheme soon: Officials

The discussions for the implementation of PLI scheme on toys, footwear as well as for components of new age bicycles are in reasonably advanced stages, DPIIT Secretary Rajesh Kumar Singh said.

The public-linked incentive (PLI) scheme is set to become applicable on toys, footwear and components of new-age bicycles, officials from the Commerce Ministry said.

“The discussions for the implementation of PLI scheme on toys, footwear as well as for components of new age bicycles are in reasonably advanced stages,” Secretary to the Department for Promotion of Industry and Internal Trade (DPIIT), Rajesh Kumar Singh said during a press briefing on June 13.

The PLI scheme currently covers 14 sectors, including steel, textiles, electronics, IT hardware, medical devices, pharmaceutical products, telecom and drones among others and discussions to include other sectors are ongoing.

“When the PLI was approved in 2020, it was made to help out strategic sectors, focusing on sectors which can create large-scale employment. The scheme being discussed for toys, footwear and components for new age bikes is in the same direction,” Additional Secretary for DPIIT, Rajeev Thakur said in the briefing.

The outlay for these schemes will be included in the total amount of Rs 1.97 lakh crore itself.

“All three are at different stages of pendency and should see the light of day soon,” another ministry official said.

FDI manufacturing increased due to PLI

There was a significant increase of 76 percent in FDI in the manufacturing sector in FY 2021-22, which stood at $21.34 billion, compared to $12.09 billion in FY 2020-21, Singh added.

“Sectors for which PLI schemes exist and have seen an increase in FDI inflows from FY 2021-22 to FY 2022-23 are drugs and pharmaceuticals (rise of 46 percent), food processing industries (rise of 26 percent) and medical appliances, (a growth of 91 percent),” he said.

The country has been able to increase the value addition in mobile manufacturing to 20 percent within a period of three years whereas a country like Vietnam achieved 18 percent value addition over 15 years and China achieved 49 percent value addition over 25 years, he added. “Seen in this perspective, it is a big achievement,” Singh added.

Import substitution of 60 percent has been achieved in the telecom sector and India has become almost self-reliant in antennae, GPON (Gigabit Passive Optical Network) & CPE (Customer Premises Equipment), the DPIIT Secretary said.

He added that the drone sector has seen a jump of seven times in turnover due to the PLI Scheme, which consists of all MSME startups.