In response to requests from the sector and a number of government ministries, the next Union Budget is anticipated to include production-linked incentive (PLI) programs for more categories, including toys, footwear, textiles, and millet-based meals.

PLI programs are now in place for fourteen industries, including telecom, mobile phones, drones, textiles, cars, white goods, and medicines. It is anticipated that new initiatives, especially in labor-intensive industries, would improve home production, lessen reliance on imports, and create more jobs.

The Department for Promotion of Industry and Internal Trade (DPIIT) suggested allocating Rs 2,600 crore for leather and footwear and Rs 3,489 crore for a PLI program on toys in the February Interim Budget. Funding was only allocated for the 25th fiscal year, though, awaiting Union Cabinet approval. The Interim Budget statement said, "An entity benefiting from any other PLI scheme of the Government of India will not be eligible for the same product."

A number of government ministries have pushed for additional PLI programs within the last 12 months. On the other hand, a number of authorities have previously stated that new programs shouldn't be implemented until the efficacy of existing ones has been determined. Industry associations demanded the inclusion of additional programs during pre-Budget talks with Finance Minister Nirmala Sitharaman. The PHD Chamber of Commerce and Industry emphasized the need for more programs in labor-intensive industries including handicrafts, leather, jewelry, and gems and stones. The Confederation of Indian Industry (CII) suggested an employment-linked incentive program for industries including toys, garments and textiles, tourism, small retail, logistics, and industries with major labor requirements and strong development potential.

Distribution

After the next program is declared and launched, no further money clearances would be needed because the Center has already set aside Rs 1.97 trillion for the 14PLI initiatives three years prior.

Nevertheless, almost Rs 41,000 crore of the allotted Rs 1.97 trillion has not yet been spent. This spare amount might be transferred to other government agencies who lack funding for the PLI program; this flexibility was included in the scheme's design. The under subscription, lackluster replies to some schemes (e.g., bulk pharmaceuticals, white goods, textiles), and decreases in scheme allocations are the reasons for the unspent cash.