In the lead-up to the monsoon season, India's government has set aside Rs. 1,596 crore (about US$184.33 million) to support six sectors, with electronics and pharmaceuticals among them, as part of the Production Linked Incentive Scheme. The ministry also plans to put in another Rs 2-3 lakh crore (US$22.75 billion) between April and September 2024. Right now, PLI schemes cover 14 sectors and involve a total of Rs. 1,97,000 crore. Some key payouts, including those for electronics and pharmaceuticals, are Rs. 964 crore (US$ 111. 34 million) for big electronics manufacturing and Rs. 604 crore (US$ 69. 76 million) for the pharmaceutical industry. Other disbursements composed of  Rs 11 crore (US$ 1. 27 million) for food products, Rs. 9 crore (US$ 1. 03 million) for telecommunications, Rs. 6 crore (US$ 0. 69 million) for bulk drugs, and Rs. 2 crore (US$ 0. 23 million) for drones.

By August 2024, PLI schemes attracted investments amounting to Rs. 1,46,000 crore (about US$ 16. 86 billion) across 14 sectors, resulting in Rs. 12,50,000 crore (US$ 144. 38 billion) incremental production and sales in addition to creation of more than 9. 5 lakh jobs and boosting exports to more than Rs. 4,00,000 crore (US$ 46.20 billion). New ancillary units become part of the supply chain and contribute to Micro, Small and Medium Enterprises (MSME) growth through these schemes. The schemes, meanwhile, will make the Indigenous domestic production cost-competitive in virtually all labour-based items against global competition and improve the export capacity of Indian businesses.

As per the report by the Ministry of Commerce and Industry PLI scheme for white goods (Air Conditioner, LED lights, stoves, refrigerators, washing machines etc. and other home appliances) has attracted 24 beneficiaries committing investments of Rs 3,516 crore, during its third round of application. Since its inception, it has received investments from 84 companies of Rs. 10,478 crore with an estimated production value of Rs 1,72,663 crore.

The initiative provides incentives ranging from 6 per cent to 4 per cent on incremental sales over five years, following a base year and one year of gestation.

The scheme’s impact is expected to bolster India’s manufacturing capabilities significantly and drive economic growth in the AC and LED sectors.