Gujarat accounts for 28% PLI CAPEX, 76% of PLI assets in solar PV sector

Gandhinagar: A recent research report has unveiled significant findings regarding the PLI (Production Linked Incentive) scheme initiated by Prime Minister Narendra Modi. This scheme, designed to boost local manufacturing, has yielded noteworthy insights into its impact and potential for promoting indigenous production.

According to a CRISIL Market Intelligence and Analysis (MI&A) report, Gujarat, Tamil Nadu, and Karnataka are poised to be the primary beneficiaries of the CAPEX investments generated by the PLI (Production Linked Incentive) scheme. These states are projected to lead in reaping the scheme’s economic benefits.
CRISIL’s report focuses on nine key sectors out of the total 14 covered by the PLI (Production Linked Incentive) scheme analysis. These sectors, including ACC Battery, Solar PV, Textiles, Mobile, Food Processing, Telecom, Goods, IT Hardware, and Medical Devices, are projected to collectively draw investments amounting to ₹2.8 lakh crore nationwide.

Gujarat leads in attracting 28% of India’s total estimated PLI CAPEX

CRISIL’s research reveals that Gujarat is set to garner a substantial share of the estimated ₹2.8 lakh crore PLI CAPEX in India, with investments exceeding ₹36,000 crore. This substantial influx of PLI investments in Gujarat spans various sectors, including ₹9,000 crore in the Advanced Chemistry Cell (ACC) battery sector, ₹24,000 crore in Solar PV, ₹3,000 crore in Textiles, and ₹500 crore in Food Processing.

In estimated PLI CAPEX, Tamil Nadu takes the lead, securing a commanding position with more than ₹42,000 crore, representing one-third of the total. Gujarat follows closely as the second-highest recipient, claiming 28% of the share, translating to over ₹36,000 crore. Karnataka emerges as the third contender, capturing 11% with an estimated investment of ₹14,000 crore. In contrast, the remaining 25 Indian states collectively share only 28%, tallying up to approximately ₹36,000 crore in investments across the nine key sectors under the PLI scheme.

Gujarat projected to claim an overwhelming 76% share of the estimated PLI CAPEX in the solar PV sector

Gujarat is set to dominate the solar PV sector’s estimated PLI CAPEX with a commanding share of over 76%, totalling more than ₹24,000 crores, while Andhra Pradesh is expected to secure the remaining 24%. Among the nine sectors under review, the ACC battery sector presents the highest investment potential, reaching ₹52,000 crore. Tamil Nadu is poised to reap the most substantial benefits from this potential with a 67% share, approximately ₹35,000 crore, while Gujarat and Karnataka are anticipated to claim 17%, amounting to approximately ₹9,000 crore, within the ACC battery sector.

According to Hetal Gandhi, Director of Research at CRISIL MI&A, “India’s PLI scheme has a current CAPEX estimate of Rs 2.8 lakh crore, with Rs 1.4 lakh crore already earmarked for specific locations. Gujarat is poised to secure approximately 30% of these investments, making it the top choice, followed closely by Tamil Nadu and Karnataka. Gujarat’s status as an energy surplus state for two decades makes it an ideal hub for high-power-demand PLI sectors. Its advantages include low power costs, robust infrastructure logistics, and expedited approval processes, making it a top choice for PLI sector leaders looking to accelerate their growth.”

Gujarat is adapting its policies to align with current industrial demands. The state is proactively implementing essential administrative reforms and offering enticing incentives to attract companies. These figures underscore the resounding success of these initiatives. As per the CRISIL report, Gujarat’s proactive approach positions it to outpace other states in securing investments under the Central Government’s PLI scheme. DeshGujarat