Finance Minister Sitharaman says PLI scheme has created 7 lakh jobs with ₹1.07 lakh crore investment

Union Finance Minister Nirmala Sitharaman on Wednesday (February 7) said the government has committed around ₹ 1.07 lakh crore under the Production Linked Incentive (PLI) scheme and 7 lakh jobs were created.

While replying to a debate on the Union Interim Budget, Sitharaman revealed a substantial increase in the outlay for the Production Linked Incentive scheme, rising from ₹8,965 crore in the FY24 Budget Estimate to ₹16,021 crore for FY25.

Sitharaman disclosed that the government's commitment of approximately  ₹1.97 lakh crore over five years, starting from 2021-22 under the PLI scheme, has already yielded substantial results.

Moreover, she emphasised the scheme's success in promoting exports, with ₹3.40 lakh crore worth of exports facilitated by the PLI initiative. The Finance Minister noted that ₹8.7 lakh crore worth of production and sales have been generated.

Highlighting the fiscal year 2025's capital expenditure, Sitharaman noted a 17% hike over the Revised Estimate (RE) of 2023-24. "FY25 capex outlay is higher than the projected (nominal) GDP growth rate of 10.5%," she said.

Addressing concerns over the fiscal deficit, Sitharaman stated, "We were expected to reach a 5.2% deficit in FY25 from 5.9% this FY. We have been fairly a lot more prudent & managed the fiscal glide path efficiently."

She further highlighted the government's success in reaching a 5.8% fiscal deficit instead of the projected 5.9% for the current fiscal year and targeting a reduction to 5.1% in the coming year.

The Finance Minister reassured that allocations for crucial budgetary heads, including school education, health, rural development, and social welfare, have either increased or remained at elevated levels.

"School education and literacy, health and family welfare, rural development, social justice & empowerment, minority affairs, women and child welfare... nowhere have we cut down," she affirmed.

Sitharaman also underscored the significant rise in capital allocation for key sectors such as roads & highways, railways, and defense for the fiscal year 2025.

Responding to queries regarding state finances, Sitharaman confirmed that states' capital expenditure loans have been retained at ₹ 1.30 lakh crore.

In a notable update on flagship schemes, the Finance Minister announced that allocations for major schemes like PM-KISAN, PMAY (Rural), and PM Gram Sadak Yojana would remain unchanged for FY25. However, allocations for schemes like Jal Jeevan Mission, MGNREGA, and PMAY (Urban) have seen increases.