New Delhi, March 3 (IANS) The FDI equity inflow in the manufacturing sector has increased by 69 per cent, rising from $98 billion (2004-2014) to $165 billion (2014-2024), driven by the Production-Linked Incentive (PLI) scheme, the government said on Monday.
In a strong push to accelerate industrial growth, the government has significantly increased budget allocations for key sectors under the PLI scheme in 2025-26, reaffirming its commitment to strengthening domestic manufacturing.
As of August 2024, actual investments totalling Rs 1.46 lakh crore have been realised, with projections suggesting this figure will cross Rs 2 lakh crore within the next year.
These investments have already led to a remarkable boost in production and sales, amounting to Rs 12.50 lakh crore, while directly and indirectly generating approximately 9.5 lakh jobs — this number is expected to rise to 12 lakhs in the near future.
Several sectors have witnessed substantial hikes, with allocations for Electronics and IT Hardware soaring from Rs 5,777 crore (revised estimate for 2024-25) to Rs 9,000 crore, and Automobiles and Auto Components seeing a remarkable jump from Rs 346.87 crore to Rs 2,818.85 crore.
The textile sector has also received a major boost, with its allocation surging from Rs 45 crore to Rs 1,148 crore, according to the government.
India’s electronics manufacturing sector has flourished under the PLI scheme, transforming from a net importer to a net exporter of mobile phones.
Domestic production grew from 5.8 crore units in 2014-15 to 33 crore units in 2023-24, with imports dropping significantly.
Exports reached 5 crore units, and Foreign Direct Investment increased by 254 per cent, highlighting the scheme’s role in boosting manufacturing and investment.
With an outlay of $3.5 billion (Rs 20,750 crore), the automotive PLI scheme has driven significant investments and boosted production of high-tech automotive products.
Over 115 companies applied, with 85 approved for incentives, attracting $8.15 billion (Rs 67,690 crore) in investments, far exceeding the target. This success has strengthened India’s position in the global automotive sector.
The PLI scheme for solar PV modules has accelerated India’s renewable energy goals. The first phase, with an outlay of $541.8 million (Rs 4,500 crore), established manufacturing capacity, while the second tranche aims to build 65 GW of capacity with $2.35 billion (Rs 19,500 crore). The initiative is expected to create jobs, reduce imports, and drive solar innovation, said the government.
India has achieved 60 per cent import substitution in telecom products under the PLI scheme. Global tech companies have set up manufacturing units, turning India into a major exporter of 4G and 5G telecom equipment. This growth strengthens India’s telecom infrastructure and enhances its position in the global supply chain, said Ministry of Commerce and Industry.
—IANS
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