PLI Scheme Yields Rs 9,721 Crore in Incentives Across Nine Sectors

Commerce and Industry Minister Piyush Goyal informed the Lok Sabha on Tuesday that incentives worth Rs 9,721 crore have been claimed under the PLI scheme for nine sectors, including large-scale electronics manufacturing and pharmaceuticals. In a written reply to a question, Goyal mentioned that an actual investment of Rs 1.23 lakh crore has been realised till March 2024 across 14 sectors, resulting in incremental production/sales of over Rs 10.31 lakh crore and employment generation of around 8 lakh.

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The PLI schemes aim to attract both domestic and foreign investments in key sectors and advanced technology. They ensure efficiency and bring economies of size and scale in the manufacturing sector, making Indian companies globally competitive. Goyal added that there is evidence of increasing foreign investment in several PLI sectors.

Foreign Investments and Implementation

For instance, Apple, a global smartphone company, has shifted its suppliers to India, including Foxconn, Wistron, and Pegatron. Goyal also noted that most projects are at the implementation stage and will be filing incentive claims in due course.

In another reply, Minister of State for Commerce and Industry Jitin Prasada said that India has granted Geographical Indications (GI) tags to as many as 643 products as of July 24 this year. Parliament was informed on Tuesday that once a product gets this tag, any person or company cannot sell a similar item under that name. This tag is valid for ten years, after which it can be renewed.

Geographical Indications and Patents

A GI is primarily an agricultural, natural or manufactured product, handicrafts, or industrial goods originating from a specific geographical territory. Typically, such a name conveys an assurance of quality and distinctiveness attributable to its place of origin. As of July 24, 2024, the office of Geographical Indications Registry has registered 643 GI applications, of which 605 are Indian.

In another reply, Prasada stated that the Indian Patent Office granted 1,03,057 patents in 2023-24. This highlights the country's growing focus on innovation and intellectual property rights.

Goyal also mentioned that settling PLI claims quarterly is anticipated to boost the performance and sentiment of applicants by improving cash flow, faster disbursement of incentives, and enhancing the efficiency of fund utilisation.

The incentive amount of Rs 9,721 crore has been claimed under the PLI scheme for nine sectors: large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, drones and drone components.

The PLI schemes are designed to attract both domestic and foreign investments in key sectors and cutting-edge technology. They ensure efficiency and bring economies of size and scale in the manufacturing sector while making Indian companies globally competitive.

The minister highlighted that there is increasing foreign investment in several PLI sectors. For example, Apple has shifted its suppliers to India with companies like Foxconn, Wistron and Pegatron setting up operations here.

Most projects are currently at the implementation stage and will file incentive claims soon. The quarterly settlement of PLI claims is expected to improve cash flow for applicants by speeding up disbursement of incentives and enhancing fund utilisation efficiency.

In another response to Parliament on Tuesday, Minister Jitin Prasada stated that India has granted Geographical Indications (GI) tags to as many as 643 products as of July 24 this year. Once a product receives this tag, no person or company can sell a similar item under that name for ten years unless renewed.

A GI typically indicates an agricultural, natural or manufactured product originating from a specific geographical area. It assures quality and distinctiveness attributed to its place of origin. As of July 24, 2024, the Geographical Indications Registry has registered 643 GI applications with 605 being Indian products.

Additionally, Prasada noted that the Indian Patent Office granted 1,03,057 patents in the fiscal year 2023-24. This reflects India's growing emphasis on innovation and intellectual property rights protection.

The PLI schemes aim to attract both domestic and foreign investments in key sectors while ensuring efficiency in manufacturing processes. They help bring economies of size and scale to make Indian companies globally competitive.

The incentive amount claimed under the PLI scheme covers nine sectors: large-scale electronics manufacturing; IT hardware; bulk drugs; medical devices; pharmaceuticals; telecom and networking products; food processing; white goods; drones; and drone components.

Minister Goyal also highlighted increasing foreign investment in several PLI sectors. For instance, Apple has moved its suppliers like Foxconn, Wistron and Pegatron to India.

Most projects are currently at the implementation stage with plans to file incentive claims soon. Settling these claims quarterly is expected to improve cash flow for applicants by speeding up disbursement of incentives while enhancing fund utilisation efficiency.