PLI scheme worth Rs 35,000 crore for bicycles, leather, and toys among 7 new sectors likely in next round

Among the new sectors, critical intermediaries of chemicals sectors are likely to get the maximum allocation of Rs 5,000 crore. This will be separate from the earlier PLI scheme for the chemical sector. This will be focused on chemicals that are strategic in nature and India is mostly dependent on imports of these chemicals.

Bicycles and toys sectors are likely to be allocated Rs 3,600 crore and Rs 3,500 crore, respectively. The leather and footwear sector may get about Rs 2,600 crore.

Keeping in view the container crisis during the Russia-Ukraine war, the government is planning to increase containers’ production domestically and therefore, about Rs 800 crore are likely to be allocated under PLI scheme.

The government may increase allocation under the PLI scheme for two sectors-IT hardware and pharma.

According to the sources, new products like display panels and memory modules may get space in the PLI scheme for IT hardware for which Rs 17,000 crore are likely to be allocated. The government may increase incentives too for such products compared to existing products, they added.

The pharma sector is also likely to get additional nearly Rs 2500 crore and this may be focused on inputs required for vaccine production.

Under the PLI scheme, the government provides financial incentives to ensure incremental sales over the base year for products manufactured in India.

In 2020, the cabinet approved PLI scheme for 10 sectors. Sources say the government has received encouraging responses from industries and investors. Several industry associations have demanded that their sectors be included in the scheme. After examining representations from industries and their requirement, the government plans to add more sectors, sources said.