The recently unveiled budget presents a timely opportunity to assess the progress of India’s widely discussed Production-Linked Incentive (PLI) subsidy. This analysis delves into the budget’s expenditure section, which provides a detailed breakdown by ministry. It includes the actual expenditure for FY22, along with the revised estimate (RE) and budget estimate (BE) for FY23, the RE and BE for FY24 and the BE for FY25. Notably absent is the actual expenditure for FY24. The primary aim of this report is to examine the discrepancies between the actual expenditures and the BE and RE figures, offering insights into the effectiveness of the PLI schemes. Additionally, this exploration includes an analysis of the trade deficit figures for key ministries that received significant funding. The goal is to determine whether the PLI schemes have achieved a critical objective: reducing imports, which is one of the key expected outcomes of this initiative.
PLI Execution Trends
The chart presented below offers a detailed analysis of the Indian government’s Production-Linked Incentive (PLI) scheme. It delineates the progress across different ministries over four financial years, culminating in the latest Budget Estimate (BE) projections for the forthcoming year, as recently disclosed in the budget announcement.