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PLI Scheme To Generate Employment For Over 60 Lakh: Survey
The Performance Linked Incentive (PLS) schemes have the ability to generate employment for over 6 million people and attract investments to the tune of Rs 4 lakh crore over the next four years, the Economic Survey for 2022-23 said
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PLI scheme is expected to attract a capex of approximately Rs 4 lakh crore over the next five years having a potential of generate employment for over 60 lakh in India stated the Economic Survey. It added that Sectors under which the PLI scheme has been announced currently constitute around 40 per cent of the total imports. The scheme, spread across 14 sectors, can enhance India’s annual manufacturing capex by 15 to 20 per cent from FY23.
The Survey mentioned that around Rs 47,500 crore ($ 6 billion) of actual investment has been made (As per recent reporting from implementing Ministries/ Departments); production/sales of Rs 3.85 lakh crore ($47 billion) of eligible products and employment generation of around 3 lakh has been reported and 106 per cent achievement of actual investment reported versus the corresponding projections of FY22.
The Survey stated that more than 100 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Telecom, White Goods and Food Processing. Key sectors such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Telecom & Networking Products, Food Processing and White Goods have contributed considerably to investment, production, sales and employment.
The Survey mentioned that ‘Make in India 2.0’ is now focusing on 27 sectors, which include 15 manufacturing sectors and 12 service sectors. Amongst these, 24 sub-sectors have been chosen while keeping in mind the Indian industries’ strengths and competitive edge, the need for import substitution, the potential for export and increased employability.
The Survey highlighted that adoption of Industry 4.0 technologies such as cloud computing, IoT, machine learning, and artificial intelligence (AI) in the Indian manufacturing sector is underway, however, large-scale adoption is yet to happen and an enabling environment is rapidly developing.
The Survey mentioned that various Government Initiatives such as SAMARTH (Smart Advanced Manufacturing and Rapid Transformation Hubs) Udyog Bharat 4.0, establishment of the Centre for Fourth Industrial Revolution is the way forward in achieving the goals of Aatmanirbharta and its ambitions of becoming a key player in global value chains.
Auto, Pharma Industry Record Growth
According to the Survey, India became the third-largest automobile market, surpassing Japan and Germany in terms of sales, in December 2022. It added that in 2021, India was the largest manufacturer of two-wheeler and three-wheeler vehicles and the world’s fourth-largest manufacturer of passenger cars. Elaborating on the domestic electric vehicles (EV) market, the Survey stated that it is expected to grow at a compound annual growth rate (CAGR) of 49 per cent between 2022 and 2030 and is expected to hit one crore units annual sales by 2030. It added that the EV industry will create 5 crore direct and indirect jobs by 2030.
The Survey highlighted that Indian pharmaceutical exports achieved a healthy growth of 24 per cent in FY21. It expressed hope that India’s domestic pharmaceutical market is estimated to grow to US$ 65 billion by 2024 from estimated $41 billion in 2021 and is further expected to reach $130 billion by 2030. Cumulative FDI in the pharma sector crossed the $20 billion mark in September 2022 and FDI inflows increased four-fold over five years until September 2022, to $699 million, supported by investor-friendly policies and a positive outlook for the industry.