The scheme aims to make domestic manufacturing globally competitive and create global champions in manufacturing, and it is yielding solid results, sources said.
A proposal to extend PLI scheme benefits to different sectors such as toys and leather is at advanced stages of finalisation and there is a likelihood that it may figure in the Budget, they added.
One of the sources said there are some savings from this Rs 2 lakh crore which could be considered for other sectors.
The Budget for 2023-24 is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1.
The PLI scheme is aimed at making Indian manufacturers globally competitive, attracting investment in the areas of core competency and cutting-edge technology; ensuring efficiencies; creating economies of scale; enhancing exports and making India an integral part of the global supply chain.
As of September 2022, the PLI scheme for LSEM (Large-Scale Electronics Manufacturing) has attracted investment of Rs 4,784 crore, and led to a total production of Rs 2,03,952 crore, including exports of Rs 80,769 crore, according to a government statement. The PLI for LSEM has attracted leading global players, including Foxconn, Samsung, Pegatron, Rising Star and Wistron while leading domestic companies, including Lava, Micromax, Optiemus, United Telelinks Neolyncs and Padget Electronics, have also participated in this scheme.
Under the scheme, all 14 sectors have received significant participation from the private sector.
According to a statement of the commerce and industry ministry issued on December 16 last year, 650 applications have been approved under 13 schemes so far and more than 100 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, telecom, white goods and food processing.
The scheme was specifically designed to boost domestic manufacturing in sunrise and strategic sectors, curb cheaper imports and reduce import bills, improve the cost competitiveness of domestically manufactured goods, and enhance domestic capacity and exports.
Saurabh Agarwal, Tax Partner, EY India, suggested that disbursements should be made in a time-bound manner and the value addition details being asked for in a few PLI schemes, such as auto, solar module manufacturing and advanced chemistry cell should be made limited to self-declaration or certifications up to Tier 1 component manufacturers.
“While some of the PLI schemes such as mobile phones, white goods, food, telecom, auto and auto-components, etc have seen an upswing in investments, making the government realise its objective of self-reliant Bharat in mid to long run, the data for investments made in other PLI schemes is not readily available for the industry to get a clear insight on the creation of value chain in many other sectors where the PLI schemes have been rolled out,” he said.