Govt Will Not Expand PLI Scheme Beyond 14 Pilot Sectors: Report 

Roughly 750 firms, including Foxconnv and Reliance Industries had signed up for the Production Linked Incentive Scheme, as per public records. 

By Autocar Pro News Desk calendar 21 Mar 2025 Views icon1323 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Govt Will Not Expand PLI Scheme Beyond 14 Pilot Sectors: Report 

The Indian government will not expand the PLI Scheme beyond the 14 pilot sectors, two of the four government officials have informed Reuters. They also added that the production deadlines will not be extended, despite requests from several participating firms. 

Roughly 750 firms, including Foxconnv and Reliance Industries had signed up for the Production Linked Incentive Scheme, as per public records, Reuters reported. 

Firms were promised cash payouts if they met individual production targets and deadlines. The hope was to raise the share of manufacturing in the economy to 25% by 2025.

Instead, many firms that participated in the program failed to kickstart production, while others that met manufacturing targets found India slow to pay out subsidies, according to government documents and correspondence seen by Reuters.

This comes against the backdrop of US President Donald Trump's latest tariff measures, set to kick in from April 2.

As of October 2024, participating firms had produced $151.93 billion worth of goods under the program, or 37% of the target that Delhi had set, according to an undated analysis of the program compiled by the commerce ministry. India had issued just $1.73 billion in incentives - or under 8% of the allocated funds, the document said.

Reuters could not elicit responses from Reliance and Foxconn. 

Two of the government officials told Reuters the end of the program did not mean Delhi had abandoned its manufacturing ambitions and that alternatives were being planned. Fourteen of the 58 projects approved for PLIs have been withdrawn or removed due to lack of progress, according to the undated program-wide analysis, the newswire noted. 


 

Tags: PLI
RELATED ARTICLES
Mobec Targets $13 Billion Lithium Battery Recycling Sector Through Strategic Partnerships

auther Sarthak Mahajan calendar29 Apr 2025

Company begins India-wide expansion with first partner in Greater Noida; aims to build scalable battery recycling networ...

Driving Synergy: How SML Isuzu Will Accelerate Mahindra’s CV Ambitions

auther Ketan Thakkar calendar28 Apr 2025

Strategic acquisition strengthens Mahindra’s CV play with expanded reach in LCVs, buses, and upcoming electric platforms...

TVS Motor Expects FY26 Sales Growth in Line with Last Year, Says CEO Radhakrishnan

auther Darshan Nakhwa calendar28 Apr 2025

TVS Motor anticipates steady sales growth in FY26, supported by domestic demand drivers, export recovery, EV segment exp...