India has allocated $1.02 billion in incentives to boost local manufacturing. This comes after private firms invested over $13 billion under a scheme introduced in 2020. Known as the Production-Linked Incentive Scheme (PLI), it covers 14 industries, including electronics and drones. It has a total value of 1.97 trillion rupees ($24 billion).
It’s a linchpin of Prime Minister Narendra Modi’s strategy to position India as a global manufacturing powerhouse, attracting participation from major global and Indian players like Apple, Foxconn, Samsung Electronics, Hindustan Unilever Ltd., and Reliance Industries.
Industry estimates indicate that the programme has resulted in a spike in mobile phone exports, which reached a record $15 billion in the most recent fiscal year.
High-ranking official Rajesh Kumar Singh of India’s Department for Promotion of Industry and Internal Trade confirmed the benefits of the programme and the quickening of incentive payouts. Significant advancements have been made in industries like electronics, food processing, and mobile phones. White goods and drones have also gained popularity. However, Singh pointed out that there are issues in industries like speciality steel and textiles that would call for changing the incentives.
