SBI Research recommends separate PLI Scheme for MSMEs

New Delhi, July 8: Recognizing the critical role of MSMEs, SBI Research has advocated for a dedicated Production Linked Incentive (PLI) scheme tailored specifically to their unique needs, which could further enhance their sectoral contribution and facilitate broader economic growth across industries such as textiles, garments, food processing, electronics, and more.

The Production Linked Incentive (PLI) scheme has been instrumental in augmenting India's manufacturing capacity by attracting fresh investments and facilitating substantial economic activity.

According to the SBI Research report, as of January 2024, 746 applications have been approved under the PLI scheme across 14 sectors, with an expected investment exceeding Rs 3 lakh crore.

Among these, 24 per cent (176 applications) are from Micro, Small, and Medium Enterprises (MSMEs), underscoring the scheme's impact on smaller businesses. The PLI scheme has proven to be a transformative force for India's manufacturing landscape.

The Production Linked Incentive (PLI) has not only attracted investments worth over Rs 1 lakh crore as of November 2023 but has also catalyzed incremental sales amounting to Rs 8.61 lakh crore.

This includes an export share of around 40 per cent, reflecting the scheme's success in enhancing India's manufacturing capabilities and global market presence.

Significant contributions to this growth have come from large-scale sectors such as electronics manufacturing, pharmaceuticals, food processing, and telecom products. These sectors have seen exports surpassing Rs 3.20 lakh crore, highlighting India's strengthening position in global trade and its expanding industrial base.