New Delhi: The budget expanded the production-linked incentive (PLI) scheme to cover toys and footwear, enhancing the sectoral coverage to 16 while increasing allocations for some key sectors .Total allocation surged by 89% to Rs 16,092 crore in FY25 from Rs 8,520 crore in FY24. Further, 38% of the total allocation in this year’s budget is aimed at incentivising large-scale electronics manufacturing as the government steps up efforts to attract investments and boost domestic manufacturing.
The outlay for auto and auto components saw a more than sevenfold rise to Rs 3,500 crore from the revised estimate of Rs 483.7 crore in FY24.
PLI allocation for large-scale electronics manufacturing is up 36% to Rs 6,125 crore, while the outlay for drone manufacturing is 72% higher at Rs 57 crore. Budget allocation for other schemes such as IT hardware, textile and ACC battery has also been increased.
“The government has announced PLI schemes in sync with industry expectations, especially focusing on the industry claim under these schemes,” said Saurabh Agarwal, tax partner at EY. “The benefits will start accruing only after 2-3 yeaRs as seen in mobile exports” he added.