Among many big measures that the government has undertaken amidst the pandemic to make India Aatmanirbhar, Production Linked Incentive (PLI) scheme is an important move. Recently, the Modi government extended this to 10 sectors, the details of which you can read in our earlier article. How it pans out across the categories is yet to be seen, but the two sectors that adopted PLI scheme at early stage are showing some trends in this regard that seem to be indicative of the reception that the initiative is getting.
One is the electronic manufacturing sector that announced a PLI scheme back in June 2020, along with some other offerings. You may read in detail in our article A Trilogy of Schemes to Script a Global Chapter in Electronics Manufacturing.
Another sector that announced a PLI scheme early was the Pharma sector.
A very warm response from the industry has been seen in both these spheres that fills us with hope about the PLI scheme achieving the desired objective in other sectors as well.
PLI in Pharmaceutical – A Good Reception
Production Linked Incentive Scheme for Bulk Drugs and PLI Scheme for Medical Devices have shown a very positive response. The closing date for the application was November 30, 2020. 215 applications made by 83 pharmaceutical manufacturers have been received under the PLI Scheme for bulk drugs. Similarly, 28 applications made by 23 medical device manufacturers have been received under the PLI Scheme for medical devices.
Here onwards, an appraisal process will take place. A maximum of 136 applications under the PLI scheme for bulk drugs and a maximum of 28 applications under the PLI scheme for medical devices will be approved within 90 days.
PLI Boon for Mobile Manufacturing
Back in October 6, 2020, government cleared 10 companies for mobile phone PLI scheme. Another 6 companies approved under the Specified Electronic Components Segment.
The international mobile phone manufacturing companies like Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron got approval under the scheme.
Under Mobile Phone (Domestic Companies) Segment, Indian companies including Lava, Bhagwati (Micromax), Padget Electronics, UTL Neolyncs and Optiemus Electronics are approved.
The impact of this clearance is expected to result in the production of ₹10.5 lakh crore and exports of ₹6.5 lakh crore expected over next 5 years.
For the uninitiated, Production Linked Scheme give cash incentives to companies setting up manufacturing in India based on the output produced by them. For more details you may read our coverage Modi Government Extends Production Linked Scheme to 10 Sectors, Gives Big Boost to Manufacturing in India.