PLI scheme: Rs 4-trn investment forecast

PLI scheme: Rs 4-trn investment forecast
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New Delhi: The PLI scheme is expected to attract investments of Rs3-4 lakh crore in the next four years and generate 2 lakh jobs as large projects in...

New Delhi: The PLI scheme is expected to attract investments of Rs3-4 lakh crore in the next four years and generate 2 lakh jobs as large projects in sectors, including semiconductor, solar module and pharmaceutical intermediaries, are expected to take off, a top Icra executive said on Wednesday. Icra Executive Vice -President and Chief Ratings Officer K Ravichandran said that going ahead private sector capex is expected to pick up in oil and gas, metals and mining, hospitals, healthcare and cement sectors.

However, taking the private sector capex to record high levels would require the government to give some tax breaks so that people have more disposable income in their hands. “Under the PLI scheme, we are expecting Rs3-4 lakh crore of additional investments in the next 3-4 years. Going ahead, semiconductor, solar module, and pharmaceutical intermediaries are some areas where large projects are expected to happen which can be capital and employment-intensive. They would be generating 2 lakh jobs in different sectors,” Ravichandran told in an interview.

The PLI scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, speciality steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharma, with an outlay of Rs1.97 lakh crore. PLI schemes have witnessed over Rs1.03 lakh crore of investment till November 2023, and employment generation of over 6.78 lakh.

With regard to private-sector capex, Ravichandran said private capex pickup is expected in oil and gas, metals and mining hospitals, healthcare, and cement. These are the sectors that are expecting large outlay over the medium term.

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