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The government is set to introduce the Production Linked Incentive (PLI) scheme for the footwear and leather sector, as well as the toys sector, in the upcoming financial year, with a combined budgetary allocation exceeding approximately Rs 6,100 crore. The PLI scheme dedicated to the toys sector is earmarked at Rs 3,489 crore and will be operational from 2024-25 to 2031-32. Simultaneously, the footwear and leather sector will receive a provision of Rs 2,600 crore.
Pending approval by the Cabinet, the Department for Promotion of Industry and Internal Trade (DPIIT) is seeking a token allocation for these schemes in the budget. For the fiscal year 2024-25, the budgetary allocation for PLI schemes stands at Rs 21,070 crore due to a substantial surge in demand for incentives from sectors such as auto and auto components, large-scale electronics manufacturing, semiconductors, and displays. Revised estimates for 2023-24 indicate an outlay of around Rs 9,508 crore for PLI, including Rs 1,503 crore for the Modified Programme for Development of Semiconductors and Display Manufacturing.
Presently, 14 sectors benefit from operational PLI schemes with an outlay of Rs 1.97 trillion. The inclusion of the footwear and leather, as well as toys sectors, will elevate the total allocation for the scheme initiated in 2020. The auto and auto components sector is allocated Rs 3,500 crore for PLI in the next fiscal year, with Rs 6,903 crore earmarked for semiconductors and displays, and Rs 6,125 crore for large-scale electronics manufacturing.
In the ongoing financial year, approximately Rs 1,515 crore has been disbursed to beneficiaries of the PLI scheme. The cumulative disbursement under the scheme, to date, amounts to Rs 4,415 crore.
News by Rahul Yelligetti
