India - PLI scheme for agrochemicals soon

The central government of India may soon finalise a production linked incentive (PLI) scheme for agrochemicals. Specific products that will enjoy the benefits under the scheme have been identified, and the industry consultations are over, it is learnt. Once announced, agrochemicals will be the 15th sector that will be covered by the PLI scheme launched a year ago.

"The government has had consultations with the industry. They have segregated few products. Very soon they are going to announce it. We are expecting some of our important molecules to be there in the scheme," a leading agrochemical manufacturer who was part of the stakeholder consultations with the chemicals and fertilisers ministry said. Going by the overall thrust given for PLI schemes, the agrochemical products for PLI scheme will be selected on the basis of the global market size of the products and the scope for Indian exports.

Recently, Mansukh Mandaviya, minister of chemicals and fertilisers, had confirmed the government's plan to introduce PLI scheme for the promotion of domestic manufacturing of agro-chemicals. The crop protection industry had also been seeking support to promote agrochemical manufacturing saying that India can become a global champion in agrochemical manufacturing with right kind of incentives as provided under PLI scheme.

In fact, some agrochemicals were among the list of 100 chemicals identified by the Department of Chemicals and Petrochemicals (DCPC) to be supported through a PLI for the chemicals sector. The list submitted by a technical committee of the department on November 2020 consisted of 100 chemicals, and its key raw materials used in agrochemicals, dyes and pharmaceuticals. A separate scheme for pharmaceuticals was announced later.

PLI schemes with an outlay of ₹1.97 lakh crore (over $26 billion) was announced in Union Budget 2021-22 for 13 key sectors of manufacturing. This included mobile manufacturing and specified electronic components, critical key starting materials/drug intermediaries & active pharmaceutical ingredients, manufacturing of medical devices, automobiles and auto components, pharmaceuticals drugs, specialty steel, telecom & networking products, electronic/technology products, white goods (ACs and LEDs), food products, textile products: MMF segment and technical textiles, high efficiency solar PV modules, and advanced chemistry cell (ACC) battery. Later, a PLI scheme for drones and drone Components got added to the list.