PLI Investment: CRISIL Market Intelligence and Analysis (MI&A) conducted extensive research into the PLI Scheme, spanning nine major sectors: ACC Battery, Solar PV, Textiles, Mobiles, Food Processing, Telecom, White Goods, IT Hardware, and Medical Devices.
Chennai, 03 September(City Times): PLI Investment: The Production Linked Incentive (PLI) Scheme, a government initiative aimed at bolstering local manufacturing, is on the verge of reshaping investment landscapes. Among the 14 sectors covered by this scheme, an in-depth analysis reveals that three states – Gujarat, Karnataka, and Tamil Nadu – are poised to reap the most significant rewards.
Tamil Nadu’s Substantial Share
CRISIL Market Intelligence and Analysis (MI&A) conducted extensive research into the PLI Scheme, spanning nine major sectors: ACC Battery, Solar PV, Textiles, Mobiles, Food Processing, Telecom, White Goods, IT Hardware, and Medical Devices. These sectors are expected to attract investments totaling Rs 1.28 lakh crore. Tamil Nadu stands to gain the most from this windfall, securing one-third of the investments, equating to over Rs 42,000 crore.
Gujarat and Karnataka’s Promising Prospects
Gujarat is another prominent contender, anticipated to secure private capital expenditures nearing Rs 36,000 crore, constituting 28 percent of the total. Karnataka, a state that has already attracted investments from global electronics giants like Wistron, is poised to capture 11 percent, or Rs 14,000 crore. In contrast, the remaining 25 Indian states are set to collectively receive only 28 percent, approximately Rs 36,000 crore, from these nine sector-specific PLIs.
ACC Battery Sector Takes the Lead
Among these nine sectors, the ACC Battery sector boasts the most substantial investment potential, with an expected influx of Rs 52,000 crore. In this sector, Tamil Nadu is projected to receive a staggering 67 percent of the total capital expenditure, approximately Rs 35,000 crore. Meanwhile, Karnataka and Gujarat are each forecasted to receive 17 percent, amounting to Rs 9,000 crore.
Solar PV’s Sunlit Path
In another significant PLI sector, Solar PV, a total capital expenditure of Rs 32,000 crore is expected. Gujarat emerges as the primary beneficiary, securing a whopping 76 percent, or over Rs 24,000 crore, of these investments. The remaining 24 percent is anticipated to flow into Andhra Pradesh.
Textiles and Mobile Handsets Shine
In other key sectoral PLIs, such as textiles and mobile handsets, states like Tamil Nadu, Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh are poised to claim the lion’s share of investments.
According to Hetal Gandhi, Director–Research at CRISIL MI&A, the PLI scheme, while initially slow, has started to yield results, especially in sectors like mobile handsets and pharmaceuticals. However, the scheme’s full potential might not be realized until 2028-29, showcasing its long-term impact on India’s manufacturing landscape.
India’s Plan to Boost Manufacturing: The PLI Scheme
India’s Production Linked Incentive (PLI) Scheme is like a booster shot for making things in the country. The government created this plan to encourage companies to produce more within India. They give money as rewards to companies that make certain things here instead of buying them from other countries. This helps Indian companies grow and creates more jobs.
Big Money Coming In
Thanks to the PLI Scheme, many sectors in India, such as electronics, medicines, clothes, and cars, are getting a lot of money. Even famous companies like Apple, Samsung, and Tesla are building or growing their factories in India. They want to take advantage of these rewards. This plan not only attracts foreign money but also pushes Indian companies to make more things.
Making India a Manufacturing Center
With all this investment, India is turning into a big place for making things. The PLI Scheme fits perfectly with India’s ‘Make in India’ plan. This plan aims to cut down on buying things from other countries, sell more to them, and make the Indian economy stronger. As the PLI Scheme keeps growing and covering new areas, it will play a big role in how India makes things in the future.