India has become a market that you can’t ignore: Global experts
India has become a market that you can’t ignore, pushed on by government reforms and a booming tech industry, top industry experts have said.
The investment in important sectors identified for domestic manufacturing growth under the flagship Production-Linked Incentive (PLI) scheme of the Centre is slowing just a year after their launch, a recent assessment made in a review meeting showed.
A review report by an inter-ministerial panel said the investment growth is significantly slow in textiles, information technology hardware, and speciality steel this financial year.
PLI schemes for mobile phones, bulk drugs, pharmaceuticals, telecom, drones, and food processing are doing well and are on track to achieve or exceed investment, production/sales as well as employment targets envisaged by the government.
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The progress has been slow in the case of medical devices, automobile and auto components, ACC batteries, and white goods as well.
Notably, the government was hoping to see investment worth Rs 49,682 crore in FY24. Of this, 61.8 per cent or over Rs 30,695 crore has been made in all the 14 sectors during the first nine months this financial year.
Even as the investment exceeded the government’s estimate in the previous financial year, progress was not uniform across all schemes.
Up to FY23, under all PLI schemes, Rs 75,917 crore was invested against a target of Rs 60,345 crore, resulting in production/sales of Rs 5.96 trillion and 367,000 direct jobs against targets of Rs 5.78 trillion of production/sales and 254,000 jobs, respectively.
There have been shortfalls in the progress under PLI schemes for textile products, IT hardware, and speciality steel with regard to targets of investment.
On a cumulative basis, the scheme has resulted in investment worth Rs 1.03 trillion till now and has led to exports surpassing Rs 3.20 trillion since its implementation.
The PLI scheme was launched for 14 sectors including mobiles, drones, telecom, textiles, automobiles, white goods, and pharmaceutical drugs.
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