New Delhi: New production-linked incentive (PLI) schemes are unlikely to materialise, while the existing schemes are yet to produce satisfactory results.
Instead, the government is working out the contours of new incentive schemes for a cluster of industries. But these new incentives will be markedly different from PLI schemes in terms of structure and objectives, with a sharper focus on job creation and quality of products, reported The Financial Express.
“The spirit of PLI has been lost. PLI is no longer the favoured child,” an official told the newspaper on condition of anonymity.
According to the budget for financial year 2026, the new schemes are likely to be rolled out for toys and leather/footwear industries. The schemes can also involve chemicals, bicycles, shipping containers, etc., said sources.
Back in 2021-22, the PLI policy was launched by the government to scale up and become large enough to compete globally.
However, the progress of the schemes is dismal.
While Companies have invested over Rs 1.5 lakh crore in the three years through September 2024 under the 14 PLI schemes – 50% of the Rs 3 lakh crore committed over five years –only Rs 11,317 crore, or 6% of Rs 1.95 lakh crore incentives linked to investments, sales/ turnover and value addition, has been disbursed till September 2024.
