Piyush Goyal holds talk with 140 PLI beneficiary firms, estimates ₹2 lakh crore investment

Union Minister of Commerce and Industry Piyush Goyal held detailed discussions with 140 companies out of the 1,300 manufacturing units across 14 sectors which have been the beneficiaries of the government's production-linked incentive (PLI) scheme, reported the news agency PTI on Sunday.

Written By Anubhav Mukherjee
Published29 Sep 2024, 08:02 PM IST
Piyush Goyal estimates investment upwards of  <span class='webrupee'>₹</span>2 lakh crores being seeded through the production-linked incentive (PLI) scheme.
Piyush Goyal estimates investment upwards of ₹2 lakh crores being seeded through the production-linked incentive (PLI) scheme.(PTI)
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He also said that it was estimated that nearly 8.5 lakh jobs will be created under the PLI scheme, but looking at the numbers, some of them are saying, “we could easily look at about 12 lakh (jobs),” according to the agency report.

“It was also our expectation that we'll see additional production of about 11 lakh crore. But hearing some of the numbers today, my own sense is both for domestic demand and for export, the production also will be much more than we had expected,” said Piyush Goyal, quoted by the agency.

The units in these sectors are doing good and are now in a position to invest, even without further support to the component manufacturing ecosystem, as the demand has started getting generated, as per the report.

Also Read | Will a new incentives package help India’s drone industry lift off?

“Overall, the policy is the same, but there are certain sectors where the ecosystem takes time to develop, and initially the domestic value add is less. Gradually it goes up. That was a good suggestion, and I asked my officials to examine it whether we could have a roadmap for these sectors through which they can transition to become a class 1 or class 2 supplier,” said Goyal, reported the agency.

In the meeting, the companies gave their suggestions including certain amendments in the government procurement, according to the agency report. 

Challenges for first-time manufacturers

The challenge is likely to be for manufacturers who make some products for the first time in India or an innovative item to cover the prior experience requirement to participate in government procurement, as per the report.

Also Read | Proposed PLI scheme for containers hangs in balance after Niti airs concerns

“Obviously, if they are making it for the first time in India, or there is an innovation which is happening for the first time in India, it is very difficult to have a prior experience,” said Goyal. “I have asked such sectors to get back to us with details so that we can take some technical expertise and its advice and see whether that same product can be through laboratory testing or other things can be made eligible to start supplying, being a new product or an innovative product without prior experience” said Goyal, reported the agency.

The Indian government has rolled out the PLI scheme in 2021 for 14 sectors, which includes electronics, pharmaceuticals, white goods, telecommunication and drones, with an allocation of 1.97 lakh crore. It aims to boost domestic manufacturing, attract investments and increase exports, as per the report.

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First Published:29 Sep 2024, 08:02 PM IST
Business NewsIndustryManufacturingPiyush Goyal holds talk with 140 PLI beneficiary firms, estimates ₹2 lakh crore investment

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