PLI scheme expected to pick up speed in FY24 after sluggish start

The Indian government’s expansive production linked incentive (PLI) programme will enter its third year in FY24, and it is anticipated that the amount of incentives paid out would virtually triple to ₹8,083 crore. The Department for Promotion of Industry and Internal Trade (DPIIT) said that the distribution for FY23 was ₹2,874 crore, or just 1.4% of the ₹1.97 trillion scheme that was started in FY21 to turn India into a manufacturing powerhouse. According to published news, several enterprises will start producing under PLI in FY24, although significant incentive claims aren’t expected to begin by FY25. Only in the second and third year are incentive payouts anticipated to reach their height. The government’s support (incentive) has increased along with production. Mobile phone manufacturing PLI scheme leads the pack, while IT hardware lags behind. Experts credit underlying demand for the success of the mobile PLI scheme. Oversupply of PCs created a glut, dampening IT hardware PLI scheme investments. Aurobindo Pharma’s investment leads the way in the bulk drugs PLI scheme. Dependence on Chinese imports to reduce with API PLI scheme’s progress.