Textiles and pharma PLI schemes likely to see longer product list

The cabinet will soon take a call on extending the benefits of production-linked incentive (PLI) schemes in textiles, food processing and pharmaceuticals to more products in these sectors, said people with knowledge of the matter. “There are two-three sectors where expansion of products in PLI is proposed which is at the cabinet level. More products are proposed to be added in sectors such as textiles,” said an official.Currently, the PLI programme covers 14 sectors, including mobile manufacturing and specified electronic components, medical devices, automobiles and auto components, pharmaceuticals, specialty steel, telecom and networking products, and white goods. The total budgetary allocation for various PLI schemes has been increased 88% to Rs 16,092 crore for FY25.

“The PLI scheme for electronics and white goods have taken off well while those for textiles and steel are yet to pick up,” the official said. A lack of bids for the advanced chemistry cell battery PLI scheme has prompted the government to seek them afresh, while in drones, many startups have applied, he said. The textile PLI for man-made fabric (MMF) garments and technical textiles could see a lower threshold for investment, besides more MMF products being covered. The government is also considering adding apparel to the scheme.

The 14 PLI schemes were approved with an outlay of Rs 1.97 lakh crore and the cumulative disbursement to the beneficiaries of the programmes has been around Rs 9,700 crore by the end of May.

Separately, the commerce and industry ministry has proposed a Rs 3,489 crore PLI scheme for toys and Rs 2,600 crore scheme for leather and footwear. “The proposed two schemes are yet to be approved by the cabinet,” said another official. A token provision was made for the two plans in the budget announced on July 23.