Though MSMEs play a pivotal role in India's economy, contributing significantly to economic development, growth, innovation and employment, four years after the scheme was launched, the large-scale manufacturing sector has emerged as its major beneficiary, the bank’s research wing, in its ‘Prelude to Union Budget 2024-25’ report, noted.
PLI scheme has been a game-changer towards augmenting incremental manufacturing capacity, drawing fresh investments to the tune of nearly ₹1 lakh crore (~$12 billion), with incremental sales of ₹8.61 lakh crore (with exports share being close to 40 per cent) and facilitating employment generation of close to 8.78 lakh.
Till January this year, 746 PLI applications had been approved in 14 sectors with an expected investment of over ₹3 lakh crore (~$35.93 billion). Out of those 746 applications, 176, or around 24 per cent, were MSMEs, the report said.
Sectors like textile, garments, handicraft and leather can be considered for separate PLIs for MSMEs, it added.
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