PLI Schemes Garner Rs 1.06 Trillion; Pharma Dominates

The production-linked incentive (PLI) schemes in the 14 sectors in the Philippines gathered over Rs. 1 060 billion in investments, the biggest shares of which came from pharma and solar modules. By the end of December 2023, 49% was accounted for by the pharma and solar sectors.

However, regarding appliances like IT hardware, auto and auto components, textiles, and ACC battery storage, the Government's response has been lukewarm since December last year.

The Government had announced PLI schemes for 14 sectors, i.e., telecommunication, white goods, textiles, manufacture of specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cells battery, drone, and new generation pharma under an outlay of Rs 1.97 lakh crore in 2021.

The same shows that the pharmaceuticals & drugs sector, which has been the only aspect of investor’s interest, attracted Rs 25,813 crore till December last year, which is the amount that was more than the expected investments of Rs 17,275 crore.

The main profit makers in this sector are Dr. Reddy’s Laboratories, Cipla, Glenmark Pharma, Biocon, and Wockhardt Ltd.

On the import of the most effective solar PV modules, however, the total investment is Rs 22,904 crore instead of the planned Rs 1.10 trillion.

It is in the department that Shirdi Sai Electricals, Reliance New Energy Solar Ltd, Adani Infrastructure, and Tata Power Solar are among the PLI beneficiaries.

Thorough all the given PLI sectors, except drones and high-efficiency solar PV cells indicated above, still receiving healthy investments as of December last year, was a bulk drug (Rs. 3,586 crores as against expected investments of Rs. 3,939 crores), medical device (Rs. 864 crore as against expected investments of Rs. 1,330.