India has recently announced an allocation of US$ 1.02 billion in incentives aimed at stimulating local manufacturing, complementing substantial private investments totaling over US$ 13 billion. These efforts are part of the larger US$ 24 billion (Rs. 1.97 trillion) production-linked incentive scheme (PLI) launched in 2020. The PLI initiative, which spans across 14 sectors ranging from electronics to drones, has attracted participation from major global and Indian companies including Apple, Foxconn, and Samsung Electronics. This initiative is in line with the vision of Prime Minister Narendra Modi to establish India as a leading manufacturing hub.
The PLI scheme has yielded significant results, with mobile phone exports reaching a record high of US$ 15 billion in the fiscal year 2024. Overall goods exports have also seen a substantial increase, ranging between US$ 36 billion to US$ 42 billion (Rs. 3 trillion to Rs. 3.5 trillion). Rajesh Kumar Singh, a senior official at India’s Department for Promotion of Industry and Internal Trade (DPIIT), highlighted the scheme’s positive impact, particularly in accelerating production within sectors such as mobile phones and electronics.
Despite facing challenges in sectors such as textiles and specialty steel, the government remains committed to refining the PLI scheme strategically. The goal is to continue incentivizing growth while maintaining a targeted approach to industrial policy. This commitment underscores India’s determination to bolster its manufacturing sector and enhance its competitiveness on the global stage.
