PLI schemes attract over Rs. 1L crore investments until December
Indian government data reveals that production-linked incentive (PLI) schemes across 14 sectors have attracted investments exceeding Rs. 1.06 lakh crore up to December 2023. The pharmaceutical and solar modules sectors were the primary recipients, accounting for nearly half of the total investment. However, sectors such as IT hardware, auto and auto components, textiles, and advanced chemistry cell (ACC) battery storage saw a tepid response.
PLI schemes rolled out across various sectors in 2021
In 2021, the government introduced PLI schemes for a variety of sectors including telecommunications, white goods, textiles, medical device manufacturing, automobiles, specialty steel, food products, high-efficiency solar PV modules, drones and pharma. The total budget allocated for these schemes is Rs. 1.97 lakh crore. The government has already disbursed Rs. 4,415 crore under the scheme for eight sectors, including electronics and pharma, until October. The government is also considering reviewing and potentially modifying the scheme for underperforming sectors.
Pharmaceuticals and solar modules top investment draw
The pharmaceuticals and drugs sector emerged as the top draw for investors with an investment of Rs. 25,813 crore till December last year, surpassing projected investments of Rs. 17,275 crore. Major players such as Dr Reddy's Laboratories, Cipla, Glenmark Pharma, Biocon and Wockhardt were key beneficiaries. The high efficiency solar PV modules sector also saw significant investment at Rs. 22,904 crore against an expected investment of Rs. 1.10 lakh crore.
Other sectors witness varied investment responses
Other sectors that saw considerable investments till December last year included bulk drugs (Rs. 3,586 crore), medical devices (Rs. 864 crore), food processing (Rs. 7,350 crore), and telecom (Rs. 2,865 crore). IT hardware recorded the lowest investment at Rs. 270 crore against expected investments of Rs. 2,517 crore. Sectors such as auto and auto components (Rs. 13,037 crore), textiles (Rs. 3,317 crore), and ACC battery storage (Rs. 3,236 crore) also saw less than expected investments.