PLI investments falter

Pharma, food processing fare well; auto & solar PV modules creep along

- PRASANTA SAHU

COMPANIES HAVE INVESTED over ₹1.07 trillion in two years through December 2023 under the 14 Production-Linked Incentive (PLI) schemes, or about 40% of the 3 trillion committed.

However, the trend is barely par for the course, with big lags in investments in many sectors such as high-efficiency solar PV modules, automobiles, ACC batteries and textiles that were supposed to lead the pack.

According to official data, of the expected production or incremental sales target of ₹40 trillion, just 17% has been achieved till December 2023. Of the direct employment potential of 1.15 million under the 14 schemes, 43% has been achieved.

Investments by the PLI-eligible firms have to be made in the initial four years to be able to gain maximum incentives. Most of the schemes were rolled out in 2021-22, implying that the investments should have been much higher by now.