Ease of doing business for MSMEs: The government’s production linked incentive (PLI) scheme, launched in pursuit of the Make in India objective, has approved 717 applications from manufacturers across 14 sectors as of December 31, 2022, with over 100 MSME beneficiaries in sectors including bulk drugs, medical devices, telecom, white goods and food processing, the Economic Survey for 2022-23 said on Tuesday, ahead of the Union Budget 2023-24.
Around Rs 47,500 crore of actual investment has been made under the scheme with production/sales of Rs 3.85 lakh crore of eligible products and employment generation of around 3 lakh people has been reported, the survey noted citing recent reporting from implementing ministries and/or departments.
Moreover, 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, according to the survey.
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Importantly, the scheme is expected to attract capital expenditure of around Rs 3 lakh crore over the next five years, generate employment for over 60 lakh people in India and increase the share of the manufacturing sector in total capital formation, which currently stands at around 17-20 per cent between FY12 and FY20, the survey added.
Commerce minister Piyush Goyal addressing the IIM Ahmedabad’s Red Brick Summit 2022 virtually in October 2022 had highlighted MSMEs to be the real beneficiaries of the PLI scheme because when a large industry comes up, it brings the whole ecosystem of manufacturers and service providers along with it. “The mainstay of India is MSMEs and the mainstay of MSMEs is large industry which aggregates what our MSMEs are doing and provides them with more opportunities,” the minister had said.
Also read: 28 MSMEs approved for telecom PLI scheme: Govt
The survey also reiterated that the scheme will benefit the MSME ecosystem in the country as the anchor units built in every sector will require a new supplier base in the entire value chain. “Most of these ancillary units will be built in the MSME sector.” The 14 sectors under the PLI scheme were mobile manufacturing, manufacturing of medical devices, automobiles and auto components, pharmaceuticals, drugs, specialty steel, telecom & networking products, electronic products, white goods (ACs and LEDs), food products, textile products, solar PV modules, advanced chemistry cell (ACC) battery, and drones and drone components.
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