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Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh has said that the production-linked incentive (PLI) schemes have led to an increase in production, employment generation, and exports of the country. He said due to the schemes, there was an increase of 76 per cent in foreign direct investment in the manufacturing sector in 2021-22 ($21.34 billion) compared to 2020-21 ($12.09 billion).

Singh stated that the schemes were announced for 14 sectors with an incentive outlay of Rs 1.97 lakh crore (about $26 billion) to strengthen their production capabilities and help create global champions. Sectors which witnessed increase in FDI inflows from 2021-22 to 2022-23 are pharmaceuticals, food processing, and medical appliances. He noted that as of date, 733 applications have been approved in 14 sectors with expected investment of Rs 3.65 lakh crore. Actual investment of Rs 62,500 crore has been realized till March 2023 which has resulted in incremental production/ sales of over Rs 6.75 lakh crore and employment generation of around 3,25,000.

He further said that the scheme has led to major smartphone companies shifting their suppliers to India. He said ‘We have been able to increase the value addition in mobile manufacturing to 20 per cent within a period of 3 years whereas countries like Vietnam achieved 18 per cent value addition over 15 years and China achieved 49 per cent value addition in over 25 years’.