Lok Sabha Question No. 917 (UNSTARRED), answered on 2024-02-07
Subject: PLI Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Prataprao  Jadhav, Sudheer Gupta, Shrirang Appa Barne, Sambhajirao Mane Dhairyasheel, Sanjay Sadashivrao Mandlik

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 917. TO BE ANSWERED ON WEDNESDAY, THE 07 TH  FEBRUARY, 2024.

## PLI SCHEME

## 917.   SHRI PRATAPRAO JADHAV:

SHRI SUDHEER GUPTA:

SHRI SHRIRANG APPA BARNE:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI SANJAY SADASHIVRAO MANDLIK:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether Production Linked Incentive (PLI) Scheme  launched by the Government  in  2020  with  the  objective  to  encourage  manufacturing  and export has completely changed the picture of manufacturing sector and if so, the details thereof;
- (b) the total number of sectors included, funds invested and manufacturing units established under PLI since its inception;
- (c) the total number of people who got employment through this initiative;
- (d) whether the  Government proposes to  incentivize  the  manufacturing  sector and generate employment by extending the scope of PLI scheme;
- (e) if  so, the details thereof and steps taken/being taken by the Government in this regard; and
- (f) the manner in which domestic/indigenous manufacturers have been benefitted by this scheme?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) to (e): Keeping in view India's vision of becoming 'Atmanirbhar', Production Linked  Incentive  (PLI)  Schemes  for  14  key  sectors  have  been announced with an outlay of Rs. 1.97 lakh crore (over US$26 billion) to enhance India's Manufacturing capabilities and Exports.

The 14 sectors are: (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active  Pharmaceutical  Ingredients,  (iii)  Manufacturing  of  Medical Devices (iv) Automobiles and Auto  Components, (v)  Pharmaceuticals

Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/Technology Products, (ix) White Goods (ACs and LEDs), (x) Food  Products,  (xi)  Textile  Products:  MMF  segment  and  technical textiles, (xii)  High efficiency solar PV  modules,  (xiii)  Advanced Chemistry Cell (ACC) Battery, and (xiv) Drones and Drone Components.

The purpose of the PLI Schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers  globally competitive.

These schemes have the potential of significantly boosting production, exports, employment, increase manufacturing activities and contribute to  economic  growth  over  the  next  five  years  or  so  there  by  having potential to change the manufacturing ecosystem going forward.

PLI Schemes for all 14 Sectors have been notified along with guidelines by the concerned Ministries/ Departments after due approval. These Schemes are in various stages of implementation by the implementing Ministries/ Departments. Actual investment of Rs. 1.07 lakh crore has been realized (till December'23) which has resulted in production/ sales worth Rs. 8.70 lakh crore. Exports have exceeded Rs. 3.40 lakh crore, with  substantial  contribution  from  key  sectors  such  as  electronics, pharmaceuticals & food processing. Incentive amount of around Rs. 4,415 crore have been disbursed under the PLI Scheme for 8 sectors. All the approved sectors identified under PLI Schemes follow the broad criteria of focusing on key technologies where India can leapfrog and multiply  employment,  exports  and  overall  economic  benefits  for  the economy. These sectors were approved after vetting of NITI Aayog and after detailed deliberations with the concerned Ministries/ Departments.

- (f): The  Production  Linked  Incentive  (PLI)  scheme  benefits  domestic/ indigenous manufacturers by providing financial incentives based on their  incremental  production  or  turnover  and  encouraging  increased output and competitiveness. Eligible domestic/ indigenous manufacturers receive support for technological upgradation, fostering efficiency and global competitiveness. The scheme aims to create jobs, contribute  to  economic  growth,  and  reduce  dependency  on imports. Tailored to specific sectors, it addresses industry-specific challenges, promoting self-sufficiency and bolstering the overall industrial base and the manufacturing ecosystem in the country.

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