The government will come up with the Production Linked Incentive Scheme for footwear and leather sector and toys next financial year with a total outlay of over around Rs 6100 crore.
The PLI for toys will have an outlay of Rs 3489 crore and run from 2024-25 to 2031-32 while for footwear and leather Rs 2600 will be provided. The schemes will have to be approved by the cabinet. Pending approval by the cabinet the Department for Promotion of Industry and Internal Trade (DPIIT) has sought a token allocation for the schemes in the budget.
At present PLI schemes for 14 sectors with an outlay of Rs 1.97 trillion are operational. The addition of two new sectors will take the allocation for the scheme launched in 2020 higher.
According to revised estimates for 2023-24 the outgo on PLI this year will be around Rs 9508 crore including Rs 1503 crore for Modified Programme for Development of Semiconductors and Display Manufacturing. For 2024-25 the allocation for PLI schemes is Rs 21070 crore because of a big jump in demand for incentives from auto and auto components, large scale electronics manufacturing, semiconductors and display.
Auto and auto components have been allocated Rs 3500 crore for PLI next FY while Rs 6903 crore has been provided for semiconductors and displays and Rs 6125 for large scale electronics manufacturing. Around Rs 1515 crore has been disbursed to the beneficiaries of PLI scheme so far this financial year. Overall disbursement under the scheme has been Rs 4415 crore.
There are 1,000 PLI supported manufacturing units operational or are in the process of coming up all over the country. Total investment by PLI companies has been Rs 1.03 trillion so far. The total number of PLI applications that have been approved so far stands at 746.
Since the inception of the Rs 1.97 trillion scheme, total production by PLI companies has been Rs 8.61 trillion, employment generation has been 6.78 lakh. PLI schemes have witnessed exports surpassing Rs 3.2 lakh crore.
