Context
Recently, NITI Aayog released a report titled “Impact Assessment of PLI Schemes”, prepared in collaboration with the Indian Institute of Management (IIM), Ahmedabad, as the knowledge partner.
About the Impact Assessment of PLI Schemes
- Objective: To assess the impact of PLI Schemes on domestic manufacturing, investment, production, exports and employment generation.
- Assessment: Based on sector-wise collection of firm-level data shared by implementing Ministries, supplemented by authenticated industry-level inputs.
- Coverage: All 14 sectors covered under the Production Linked Incentive (PLI) framework.
- Assessment Categories: Sectoral outcomes have been classified into four categories:
- On-Track
- Partial Impact
- Insignificant Evidence of Impact
- Data Unavailable
Major Findings of the Report
- Overall Performance: Nearly 70% of the targeted segments are on track under the PLI Schemes.
- Successful Sectors: Pharmaceuticals, Mobile Manufacturing (LSEM), Food Processing, Telecom, White Goods, Automobiles and Drones have demonstrated notable progress in investment, production and capacity creation.
- Drones Sector: Has emerged as an early implementation success.
- Solar PV Manufacturing: High-efficiency solar PV module manufacturing capacity has expanded significantly, strengthening India’s renewable energy manufacturing ecosystem.
- Emerging Technology Sectors: Advanced Chemistry Cell (ACC) Batteries, Specialty Steel and Technical Textiles are witnessing gradual capacity creation and ecosystem development.
- Investment and Production: The schemes have stimulated investment and production beyond targets, strengthening domestic manufacturing capabilities.
Significance of PLI Schemes
- Manufacturing Competitiveness: Enhances India’s domestic manufacturing capabilities and global competitiveness.
- Investment Promotion: Encourages domestic and foreign investment in strategic manufacturing sectors.
- Export Promotion: Facilitates India’s integration into Global Value Chains (GVCs) and strengthens export potential.
- Employment Generation: Promotes industrial expansion and creates employment opportunities.
- Technology Advancement: Encourages the adoption of advanced technologies and development of domestic capabilities.
- Import Substitution: Reduces dependence on imports by strengthening domestic production and supply chains.
- Aatmanirbhar Bharat: Supports India’s vision of self-reliance in manufacturing and industrial development.
- Viksit Bharat@2047: Contributes to the development of a globally competitive and employment-generating manufacturing ecosystem.
Conclusion
The impact assessment highlights the significant role of PLI Schemes in stimulating domestic manufacturing, investment and exports. However, deeper domestic value addition, greater MSME participation and stronger supply chains remain essential for achieving sustainable industrial growth and the vision of Viksit Bharat@2047.
| Important CTC From This Article: PLI Scheme |