PLI Schemes Drive Industrial Resurgence in India

India's 'Make in India' initiative sees success in industrial growth, thanks to PLI schemes. Sectors such as electronics, steel, and pharmaceuticals show remarkable progress. Investments, job creation, and exports have surged, positioning India as a key player on the global manufacturing stage.

The Production Linked Incentive (PLI) schemes, under the Make in India initiative, are producing tangible outcomes across 14 sectors. Manufacturing and construction exhibited nearly double-digit growth in the fiscal year 2023-24, primarily due to the initiative's implementation over the past decade.

These PLI schemes have attracted over Rs 1.28 lakh crore in investments and created upwards of 8.5 lakh jobs, significantly boosting electronics, steel, pharmaceuticals, and defense manufacturing. Notably, toy exports surged by 239%, mobile phone production increased by 600%, and India emerged as a net exporter of steel with doubled production levels recently.

Furthermore, the development of plug-and-play industrial parks in more than 100 cities has drawn investment, enhancing India's profile as an industrial hub. Initiatives like the Critical Mineral Mission aim to secure resources critical for semiconductor, electric vehicle, and renewable energy production. Meanwhile, new bio-manufacturing schemes are propelling India toward a leadership role in biomanufacturing.

India's core industries are flourishing, with record-breaking achievements in steel and coal sectors. Steel production expanded by 50% since 2014, and the coal sector reached near one billion tonnes in FY24, cutting down coal imports drastically over the past decade.

The robust pharmaceutical industry, valued at USD 50 billion, is the world's third-largest in volume. Micro, Small, and Medium Enterprises (MSMEs) remain vital, contributing 35% of total output and 45% of exports.

As of 2024, 4.7 crore MSMEs are registered on the Udyam Portal, benefiting from Rs 6.78 lakh crore in credit guarantees. Moreover, the Prime Minister's Employment Generation Programme has supported over 89,000 micro-units, leading to the creation of 7.13 lakh jobs in FY24.

The electronics sector recorded an astounding 400% rise in domestic production from 2014 to FY23. In 2024, India's semiconductor sector reached a milestone with annual production set to hit 2,500 crore chips. The establishment of a semiconductor fabrication plant, with a USD 100 billion investment, is expected to enhance semiconductor production capacity significantly.

Indian firms are targeting silicon carbide device production to cater to the mounting global demand for advanced chips.

(With inputs from agencies.)