Reaction to PLI scheme to attract investment – ​​News India Live

Mumbai: The government's Production Linked Incentive (PLI) scheme to promote investment and generate employment in the country does not seem to be giving the expected results. Looking at the data received, it seems that the expected investment and employment under PLI has not been achieved in two years.

Indian companies invested Rs 1.07 trillion under PLI in the two years ending December 2023. An investment of Rs 3 lakh crore was guaranteed in two years under PLI for 14 sectors. Thus, 35 percent of the expected investment has been received. Government sources said sectors like solar PV modules, textiles, automobile received less investment than expected.

The picture of not only investment but also employment generated under this scheme does not look very encouraging. Against the expectation of creating 11.50 lakh jobs under the scheme, only 4.90 lakh jobs have been created.

As against the expected increase of Rs 40 trillion, an increase of only 17 per cent has been observed. PLI eligible companies will have to invest in the initial four months to avail maximum benefits. Maximum number of schemes have been announced for 14 sectors in 2021-22.

Nearly Rs 2 trillion for PLI schemes has been announced in the Budget for the financial year 2021-22 to make India self-reliant and increase India's manufacturing capacity and exports.

Most of the schemes were announced in 2021 but their implementation was delayed. The pharma sector has seen more investment than the target, while sectors like solar PV module, automobile, electronics, textile have seen less investment than the target.

The investment of fifty-five companies in the pharmaceutical drug manufacturing sector was Rs 25,813 crore against the target of Rs 17,275 crore. Government sources further said that since solar modules is a new area for India, manufacturing of modules here is becoming expensive, which is not particularly attractive for investors.

The data also revealed that a benefit of Rs 2900 crore was released under each PLI scheme in the last financial year. The same amount is expected to be released in the current financial year also.

Companies are facing challenges in getting benefits under the schemes due to various situations.

Investment in various PLIs