Ease of doing business for MSMEs: The PLI schemes were introduced to enable India’s self-reliance in manufacturing by focusing on 14 sectors with an incentive outlay of around $26 billion.
Ease of doing business for MSMEs: The production-linked incentive (PLI) scheme, launched by the government to push its Make in India objective, has approved 733 applications from manufacturers across 14 sectors as on date including 176 MSME beneficiaries in sectors such as bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones, informed Rajesh Kumar Singh, Secretary, DPIIT at an event on Tuesday. Till December-end 2022, the MSME beneficiary count was more than 100, according to the Economic Survey for 2022-23 earlier this year.
“Particularly the drones sector has seen seven times jump in turnover due to the PLI Scheme which consists of all MSME Startups while under the PLI Scheme for food processing, sourcing of raw materials from India has seen a significant increase which has positively impacted income of Indian farmers and MSMEs,” Commerce Ministry said in a statement on the event.
The PLI schemes were introduced to enable India’s self-reliance in manufacturing by focusing on 14 sectors with an incentive outlay of around $26 billion. Singh noted that due to PLI schemes, there was a significant increase of 76 per cent in FDI in the manufacturing sector amounting to $21.34 billion in FY22 compared to $12.09 billion in FY21.
Among sectors under PLI schemes, which saw growth in FDI inflows from FY22 to FY23 were drugs and pharmaceuticals with over 46 per cent growth, food processing industries with more than 26 per cent growth and medical appliances with over 91 per cent growth.
Out of the expected investment of Rs 3.65 lakh crore across 733 applications, actual investment of Rs 62,500 crore was realized till March 2023, resulting in incremental production or sales worth more than Rs 6.75 Lakh crore and employment generation of around 3.25 lakh, the ministry said.
Commerce Minister Piyush Goyal at an event in October 2022 had noted MSMEs to be the real beneficiaries of the PLI scheme because when a large industry comes up, it brings the whole ecosystem of manufacturers and service providers along with it. “The mainstay of India is MSMEs and the mainstay of MSMEs is large industry which aggregates what our MSMEs are doing and provides them with more opportunities,” the minister had said.