No plan to introduce PLI in new sectors: DPIIT

Centre has no plan to introduce production linked incentive (PLI) schemes in any new sector at the moment. PLI has already been deployed in 14 sectors. Instead, it will tweak some existing schemes to make them more attractive and industry friendly, Rajesh Kumar Singh, secretary, Department for Promotion of Industry and Internal Trade (DPIIT) tells Fortune India, while speaking on the sidelines of the 27th World Investment Conference in New Delhi.

“The government would prefer to see how these 14 sectors do. The plan is to let them all stabilise and do well, and consider more sectors thereafter. But at the moment, there are no plans or consultations for any new PLI schemes,” he explains. 

With an overall outlay of ₹1.97 lakh crore (over $26 billion), the scheme intends to enhance India’s manufacturing capabilities and self-reliance and exports.

Singh says the PLI scheme has been a runaway success for some sectors while most others are picking up. “Mobile manufacturing has led to a lot of increase in exports and sales within the country. PLI schemes for pharmaceutical and food processing sectors are doing reasonably well. Schemes like the one for white goods are still in the gestation period. We are confident about these sectors because the investment has come in,” he says.

On the plans to tweak some of the existing schemes, Singh says: “Consultation process is on. Textile and pharma are two such sectors. It is not because they are not attractive at the moment, but because there is a need for some flexibility in timelines, in terms of product lines and things like that,” he says.

The flagship PLI programme of the government currently covers 14 sectors including mobile manufacturing and specified electronic components, critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, medical devices, automobiles and auto components, pharmaceuticals, specialty steel, telecom & networking products, electronic/technology products, white goods (ACs and LEDs),food products, textile products (MMF segment and technical textiles), high efficiency solar PV modules, Advanced Chemistry Cell (ACC) Battery, and drones and drone components. According to the Ministry of Commerce and Industry, out of the 733 applications selected under various PLI Schemes, 176 PLI beneficiaries are MSMEs in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles & drones.