PLI schemes have created 36% direct jobs across 14 sectors

PLI schemes have created 5.84 lakh direct jobs till June 2024, which is approximately 36% of the total 16.2 lakh direct jobs that targeted to be created over the next five years or so, across the 14 sectors.

Ramesh Alluri Reddy, Chief Executive Officer, TeamLease Degree Apprenticeship, stated the following: 

Production-linked incentive (PLI) scheme has emerged as a cornerstone for bolstering India’s manufacturing sector and generating significant employment opportunities. With an outlay of ₹1.97 lakh crore across 14 sectors, including pharmaceuticals, food processing, and large-scale electronics manufacturing, it has attracted ₹1.23 lakh crore in private investments from 755 successful applicants. 

By June 2024, this initiative had already created 5.84 lakh direct jobs, achieving approximately 36% of its ambitious target of 16.2 lakh jobs over five years. Notably, the mobile manufacturing sector has set benchmarks, creating over 1.22 lakh jobs and firmly establishing India as a preferred destination for global tech giants like Apple, which has leveraged partnerships with Foxconn to enhance production capacities. 

Similarly, the food processing sector has shown remarkable progress, generating 2.45 lakh jobs within three years of the scheme's six-year timeline. While these achievements underscore the scheme's ability to address gaps in manufacturing ecosystems and foster global competitiveness, certain sectors, like advanced chemical cell (ACC) batteries and textiles, have faced slower progress, necessitating strategic adjustments to meet their potential.

Amid this surge, the demand for skilled labor has reached unprecedented levels, making skilling an urgent priority to sustain this momentum. India’s apprenticeship ecosystem provides a transformative pathway to address this challenge, acting as a vital bridge between academic learning and industry demands. 

Apprenticeships offer practical, hands-on learning tailored to sector-specific needs, preparing young workers to excel in dynamic industries such as electronics, renewable energy, and pharmaceuticals. For sectors like ACC batteries and IT hardware, where job creation has been slower, focused apprenticeship programs can expedite workforce readiness, improve productivity, and ensure timely project execution. 

Moreover, by extending apprenticeship opportunities to rural and semi-urban areas, the ecosystem can unlock underutilized talent pools, promoting inclusive growth. To maintain and enhance the trajectory of the PLI scheme’s impact, we suggest the urgent need to bridge this skills gap with collaborative efforts from industry stakeholders, educational institutions, and policymakers. 

This alignment is crucial for creating a workforce that not only meets the demands of a growing manufacturing sector but also secures India’s position as a global manufacturing hub for years to come.