Centre gives nod to PLI scheme worth ₹1.46 lakh crore, set to transform India into a manufacturing hub

The Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday gave its approval to introduce Production-Linked Incentive (PLI) Scheme in 10 key sectors to enhance India’s manufacturing capabilities and exports.

The 10 sectors and the approved financial outlay are as given below:

Priority Sectors Implementing Ministry/Department Approved financial outlay over a five-year period Rs.crore
1. Advance ChemistryCell (ACC) Battery NITI Aayog and Department of Heavy Industries 18100
2. Electronic/Technology Products Ministry of Electronics and Information Technology 5000
3. Automobiles
& Auto Components
Department of Heavy Industries 57042
4. Pharmaceuticals drugs Department of Pharmaceuticals 15000
5. Telecom & Networking Products Department of Telecom 12195
6. Textile Products: MMF segment and technical textiles Ministry of Textiles 10683
7. Food Products Ministry of Food Processing Industries 10900
8. High Efficiency Solar PV Modules Ministry of New and Renewable Energy 4500
9. White Goods (ACs & LED) Department for Promotion of Industry and Internal Trade 6238
10. Speciality Steel Ministry of Steel 6322
Total 145980

The PLI scheme across the 10 key specific sectors will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology, ensure efficiencies, create economies of scale, enhance exports and make India an integral part of the global supply chain. The total outlay has been pegged at ₹1,45,980 crore.

The above sectors will be in addition to the already notified PLI schemes in the following sectors: Mobile Manufacturing and Specified Electronic Components, Critical Key Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients, Manufacturing of Medical Devices.

Finance Minister Nirmala Sitharaman while making the announcement said that the scheme would entail an expenditure of ₹2 lakh crore.

“The Prime Minister’s clarion call for an ‘AatmaNirbhar Bharat’ envisages policies for the promotion of an efficient, equitable and resilient manufacturing sector in the country.Growth in production and exports of industrial goods will greatly expose the Indian industry to foreign competition and ideas, which will help in improving its capabilities to innovate further. Promotion of the manufacturing sector and creation of a conducive manufacturing ecosystem will not only enable integration with global supply chains but also establish backward linkages with the MSME sector in the country. It will lead to overall growth in the economy and create huge employment opportunities.”, the official press release by Press Information Bureau read.