The Production-Linked Incentive (PLI) scheme, introduced in 2021 for 14 key sectors to meet the objectives of Atmanirbhar Bharat, has attracted significant investments, boosted production/ sales and exports and generated jobs but the path to further industrialisation in the country has to be paved with deregulation, the Economic Survey for 2023-24 has noted.
The PLI scheme, with an outlay of ₹1.97-lakh crore, led to investments of over ₹1.28-lakh crore, production/sales of ₹10.8-lakh crore, and additional employment of over 8.5 lakh, until May 2024, the survey stated.
“Export boosted by ₹4-lakh crore, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom & networking products,” it said.
However, the path to further industrialisation in India has to be paved with deregulation and decisions that are best left for the entrepreneurs are not be mandated by law, leading to fear of prosecution. “Where governments across the country can help is in reviewing, amending, relaxing and annulling regulations that are messy, stifling, counterproductive and raise the cost of operations for businesses without commensurate public benefits,” the Survey advised.
Job creation
The PLI scheme targets to create 60 lakh new jobs, and an additional production of 30-lakh crore in a five-year period. Job creation under the scheme is important as the Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to cater to the rising workforce, according to the survey.
The sectors covered under the PLI scheme include mobile manufacturing and specified electronic components; drug intermediaries & APIs; medical devices; automobiles and auto components; pharmaceuticals drugs, specialty steel, telecom & networking products; electronic/technology products; white goods (ACs and LEDs), food products, textiles (MMF segment and technical textiles), high efficiency solar PV modules, ACC battery, and drones & components.
While the scheme showed excellent results for the mobile manufacturing sector, it has started to pick up in some, such as the three pharmaceutical related sectors, the IT hardware sector and the white goods sector, yet, for some others, it still is a long way to go.