PLI scheme approved for toys, leather, and footwear

The PLI scheme for toys will have an allocation of Rs 3,489 crore, while the footwear and leather sector will receive Rs 2,600 crore. These schemes are awaiting cabinet approval. Currently, PLI schemes are operational for 14 sectors with an outlay of Rs 1.97 trillion.

According to budget documents, the government will launch a Production-Linked Incentive (PLI) scheme for the toys and leather and footwear sectors, with a total allocation exceeding Rs 6,000 crore. The PLI for toys will receive Rs 3,489 crore, and the footwear and leather sector will get Rs 2,600 crore. 

These schemes, pending cabinet approval, are set to run until 2031-32, with a token allocation for the current year.

Furniture, bicycles, chemicals, and construction equipment are among the other industries that have requested for PLI schemes. However, there is no indication that the government has made any decisions regarding these requests.

The PLI scheme was initially launched in March 2020 for three products: raw materials for the pharma industry, medical devices, and large-scale electronics manufacturing. In November 2020, ten additional sectors were included, and in September 2021, the PLI scheme was extended to cover drones.

Currently, PLI schemes are operational for 14 sectors with an outlay of Rs 1.97 trillion. Adding the new sectors will increase the allocation for the scheme launched in 2020.

So far, only 5% of the total funds have been disbursed as incentives. The incentive outgo is expected to rise to Rs 14,182 crore this financial year from Rs 8,000 crore in FY24, up from Rs 2,900 crore in FY23. Incentive payouts are projected to increase as production ramps up in many units. By December 2023, PLI companies had invested around Rs 1.07 trillion, generated incremental sales of over Rs 9 trillion, and created 700,000 jobs.