The PMO appears disinclined in direction of approving new Manufacturing Linked Incentive (PLI) schemes for extra sectors and lengthening tenures for a number of the current ones with many requests from the business and line-Ministries getting rejected by it or saved in suspension, sources have mentioned.
“Final month, the PMO rejected a proposal for extension of PLI scheme tenure for photo voltaic panels. It’s also not able to approve the proposed PLI schemes for toys and footwear, even though token outlays had been already allotted for these within the interim price range for FY25,” the supply identified.
Furthermore, Funds 2025-26 had no point out of a brand new PLI scheme for electronics elements regardless of robust hopes from the business backed by Ministry of Electronics and Info Expertise (MeitY).
“Whereas the ultimate phrase on new PLI schemes isn’t out, the message from the PMO is evident that except a proposal appears particularly helpful for the economic system, approvals won’t come. Ministries and Departments have been requested to concentrate on enhancing the working of the prevailing PLI schemes,” a supply mentioned.
14 SECTORS
The PLI scheme, protecting a complete of 14 sectors was introduced in 2021 with an outlay of ₹1.97 lakh crore, to draw investments, incentivise native manufacturing in strategic areas and encourage exports. The assist beneath the scheme, based mostly on minimal investments and turnover, is offered over a interval of 5 years.
The 14 sectors coated embrace cellular manufacturing; drug intermediaries & APIs; medical gadgets; auto & elements, pharma, specialty metal, telecom merchandise; digital/know-how merchandise; white items, meals merchandise, textiles (MMF phase and technical textiles), excessive effectivity photo voltaic PV modules, ACC battery and drones & elements.
“An enormous cause behind the PMO’s cautiousness in increasing the scheme is the truth that it has not taken off in addition to anticipated for lots of the beneficiary sectors. It needs focus to be on guaranteeing that the prevailing ones choose up tempo,” the supply mentioned.
In January 2025, the PMO rejected a plea from the Ministry of New and Renewable Vitality for extension of scheme tenures for photo voltaic panels arguing that this could reward the non-performers. The toy and footwear sectors, too, must make do with the schemes to advertise native manufacturing introduced in Funds 2025-26, as there are not any indications of the proposed PLI schemes being authorised, one other supply mentioned.
“The digital element producers confronted disappointment in Funds 2025-26 as a result of regardless of finest efforts put in by MeitY, the proposed PLI scheme for the sector couldn’t be introduced. There isn’t a readability concerning the future as nicely,” the second supply mentioned.
Textiles PLI
A proposal made by the Textiles Ministry, to increase PLI scheme for man-made and technical textiles gadgets, to cotton and different merchandise as nicely, additionally hangs in steadiness.
Other than cellular manufacturing, which has carried out very nicely, and a handful of different sectors akin to electronics, meals processing, prescription drugs and white items, which have began displaying some promise, the remaining sectors are but to choose up steam.
