Piyush Goyal reviews PLI scheme, emphasises need for self-reliance and export competitiveness

New Delhi [India], June 25 (ANI): India must focus on the sectors in which it has a competitive edge over other countries and address the problems faced by the various stakeholders so that the country's exports can grow, Union Minister of Commerce and Industry Piyush Goyal said at the review meeting on the Production Linked Incentive Scheme.

Goyal urged the need to become self-reliant in the key sectors covered under the PLI Scheme.

Emphasising that the Ministries should focus on creating quality skilled manpower instead of focusing on quantity and resolving infrastructure bottlenecks in collaboration with the National Industrial Corridor Development Corporation (NICDC), Goyal stressed the need to prepare a roadmap for the next five years, both for investment and disbursement.

All the concerned ministries attended the meeting.

The PLI Scheme is under various stages of implementation in 14 key sectors.

The scheme has witnessed investments worth Rs 1.76 lakh crores, which has generated production/ sales of over Rs 16.5 lakh crores and employment of over 12 lakhs (Direct and Indirect) till March 2025.

A cumulative incentive amount of Rs 21,534 crore has been disbursed under PLI Schemes for 12 Sectors: Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom and Networking Products, Food Processing, White Goods, Automobiles and Auto components, Specialty Steel, Textiles, drones, and Drone Components.

"The impact of PLI Schemes has been significant across various sectors in India. These schemes have incentivised domestic manufacturing, leading to increased production, job creation and a boost in exports," the commerce ministry said.

Pharmaceutical Drugs: The sector has witnessed cumulative sales of Rs 2.66 lakh crore, which includes exports of Rs 1.70 lakh crore, in the first three years of the scheme.

Export sales of eligible products under the scheme for 2024-25 were Rs 0.67 lakh crore, which is approximately 27 per cent of the country's total pharma exports during the same period.

The approved companies have undertaken 40 per cent of the total investment (Rs 37,306 crore), amounting to Rs 15,102 crore in Research and Development (R&D) for eligible products under the scheme.

The overall Domestic Value Addition in the Sector has been 83.70 per cent as of March 2025.

Bulk Drugs: The PLI Scheme for Bulk Drugs aims to boost domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs) in India.

The scheme has contributed to India becoming a net exporter of bulk drugs (Rs 2,280 crore) from a net importer (Rs (-) 1,930 crore) as was the case in 2021-22.

It has also significantly reduced the gap between the domestic manufacturing capacity and the demand for critical drugs.

Food Products: PLI Scheme for food products has reported investments worth Rs 9,032 crore, resulting in production/sales of Rs 380,350 crores and employment of 340,116 (Direct and indirect).

By mandating the use of domestically grown agricultural products (excluding additives, flavours, and edible oils) in manufacturing, the scheme has substantially increased local raw material procurement, benefiting underdeveloped and rural areas while supporting farmers' incomes.

Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies.

This has strengthened SMEs by fostering innovation, improving competitiveness, expanding market access, generating employment opportunities, and supporting the broader value chain in the food processing industry.

The sales of Value-Added Marine products increased at a CAGR of 22 per cent during the PLI period.

With the launch of the PLI Millet Scheme, the Sales of Millet-Based Products increased 25 times in 2024-25 over the Base Year (2020-21).

The procurement of millets by the PLI beneficiaries has increased from 4081 MT in 2022-23 to 16130 MT in 2024-25, which has led to an increase in the rural household income.

Textiles: Exports of Indian Man-made Fibre (MMF) Textiles have reached USD 6 billion during 2024-25 as against exports of USD 5.7 billion during 2023-24.

The overall exports of Technical Textiles from India reached USD 3,356.5 million during 2024-25 as against exports of USD 2,986.6 million during 2023-24. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)