The 14 sectors covered under the production promotion programs (PLI) have seen an investment of Rs 1.46 lakh crore till August and the capital infusion is expected to reach Rs 2 lakh crore in the coming years, the Commerce and Industry Ministry said on Sunday. .
Commerce and Industry Minister Piyush Goyal held detailed discussions with companies receiving financial benefits under the schemes to seek feedback and feedback.
The minister discussed with 140 companies out of 1,300 in 14 industries, which are the beneficiaries of this program.
“Total achievements of PLI programs were discussed in the meeting. Actual investment of Rs 1.46 lakh crore has been realized (till August 2024) and it is likely to reach Rs 2 lakh crore in the next year or more,” the Ministry said. statement.
This has resulted in production / sales worth Rs 12.50 lakh crore and employment generation of about 9.5 lakh (direct and indirect), which is expected to reach 12 lakh soon, it said.
Exports crossed Rs 4 lakh crore, with major contributions from key sectors such as electronics, pharmaceuticals and food processing, it added.
At the meeting, Goyal urged the Indian industry to focus on prioritizing the production of quality goods to promote Brand India through sustainable methods.
He also asked to focus on increasing domestic value addition and support for domestic producers in this regard.
During the three-hour interaction, the CEOs of the beneficiary companies shared their views on the PLI programs, and made suggestions to improve their effectiveness and facilitate their implementation.
The minister said that the government is committed to expedite all necessary approvals related to the PLI industry and provide hand-holding support to achieve greater market access.
Speaking to the media after the talks, the minister said that it was expected that “we will see an additional production of about Rs 11 lakh crore. But hearing some of the numbers today, my sense is that, both domestic demand and exports, production will also be more than we expected”.
The minister said that the units in these sectors are doing well and are now in a position to invest, even without additional funding for the production ecosystem, because the demand has started to be generated.
At the meeting, firms presented their proposals including those related to certain amendments to government procurement.
“Overall, the policy is the same, but there are certain sectors where the ecosystem takes time to develop, and at first the domestic value add decreases. Gradually it increases. That was a good proposal, and I asked my officials to examine it. or we can have a guide for these sectors that they can change to be tier 1 or tier 2 suppliers,” said Goyal.
The requirement of prior knowledge to participate in government procurement for manufacturers who are making certain products for the first time in India or something new may be a challenge.
“Obviously, if they are doing it for the first time in India, or something new is happening for the first time in India, it is very difficult to have prior knowledge,” he said, adding, “I have asked. through laboratory tests or other things can be qualified to start supplying, being a new product or a new product without previous experience”.
The government has launched the program in 2021 in 14 sectors including electronics, pharma, white goods, telecommunications and drones with an estimated cost of Rs 1.97 lakh crore. It aims to increase domestic production, attract investors and increase exports.
In the electronics sector, mobile phone production now accounts for half of India’s gross domestic product, with a “3x” increase in exports from 2020-21, the ministry said.
Also in the automotive sector, the world champions have released electric cars, with huge investments in the country.