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PLI scheme to deliver modest capex push across sectors: Credit Suisse study

Scheme is skewed towards assembly-based operations for attaining peak revenue targets, but they make the least capex investment

PLI, Product-linked scheme, electronics, manufactuing, consumer durables, air conditioners, white goods, led lights
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Surajeet Das Gupta New Delhi
The capital investment made by companies eligible for production-linked incentives (PLI) will have a modest impact on the annual incremental increase in capex across sectors, of about 8-10 per cent on average, a study by Credit Suisse says.
 
The study points out the annual incremental increase in capex by PLI players in speciality steel will be the highest, at 17 per cent, followed by textiles (14 per cent), auto (10 per cent), pharma (4 per cent) and all the other schemes at an average (4 per cent, excluding new sectors such as advanced cell battery manufacturing where a local base

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