PLI schemes to create 60 lakh new jobs in 5 yrs: Centre

The Production Linked Incentive (PLI) schemes, being implemented by the government with an outlay of ₹1.97 lakh crore for a period of 5 years starting from 2021-22, have the potential for creating 60 lakh new jobs, Minister of State for Labour and Employment Rameswar Teli said in Parliament.

The Centre’s projections say the minimum production in India as a result of PLI schemes is expected to be over US$ 500 billion in 5 years.

The PLI schemes under India's Atmanirbhar Bharat initiative aim to make domestic manufacturing globally competitive and to create global champions in several key sectors. The scheme offers companies incentives on incremental sales from products manufactured in India, while boosting domestic manufacturing in sunrise and strategic sectors.

The government has adopted PLI schemes across various sectors including electronic products, pharmaceuticals drugs, telecom and networking products, among others.

Minister of State for Food Processing Industries Prahlad Singh Patel this week said the PLI Scheme for the food processing industry will facilitate the expansion of food processing capacity by creating champion brands in the sector. "PLI Scheme for the food processing industry is targeted to facilitate the expansion of food processing capacity by creating champion brands in Food Processing Sector with a total outlay of Rs 10,900 Cr for a period of 6 years (2021-22 to 2026-27)," he said.

The Ministry of Steel last week signed 57 MoUs with 27 companies for specialty steel under the PLI Scheme. The government has approved ₹6,322 crores to give a new impetus to the steel sector. The PLI scheme is expected to generate investment worth ₹30,000 crore and additional capacity creation of about 25 million tonnes of specialty steel in the next 5 years.

Taking about employment initiatives taken in the country, Teli, in a written reply in the Rajya Sabha, said the budget of 2023-24 proposed to increase capital investment outlay steeply for the third year in a row by 33% to Rs 10 lakh crore, which would be 3.3% of GDP.

"This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation," he said.

Under Pradhan Mantri Mudra Yojana (PMMY), said the minister, more than 39.65 crore loan accounts have been sanctioned as of February 24, 2023. The scheme allows collateral-free loans up to ₹10 lakh to micro/small business enterprises and to individuals to enable them to set up or expand business activities.

On announcing the Aatmanirbhar Bharat package to businesses, the minister said the government has provided fiscal stimulus of over ₹27 lakh crore to make the country self-reliant and to create jobs.

He said the Aatmanirbhar Bharat Rojgar Yojana (ABRY), launched in 2020 to incentivise employers to create new jobs, has provided benefits to 60.3 lakh under the scheme. Under the PM SVANidhi Scheme, since June 01, 2020, 42.21 lakh collateral-free working capital loans have been provided to Covid-hit street vendors to restart businesses.