PLI scheme draws ₹2.16 trillion investment, drives ₹20.41 trillion in sales across 14 sectors

NEW DELHI: The Centre on Friday said the Production Linked Incentive (PLI) scheme, with a total outlay of ₹1.91 trillion, has attracted cumulative investment of more than ₹2.16 trillion and generated sales exceeding ₹20.41 trillion across 14 strategic sectors, underscoring its role as a central pillar of India’s manufacturing push.

As of 31 December 2025, 836 applications had been approved under the scheme. It has also driven cumulative exports of over ₹8.3 trillion and created more than 1.44 million direct and indirect jobs. Incentives worth ₹28,748 crore have been disbursed so far, the commerce and industry ministry said in a statement.

Launched in 2020, the PLI scheme marked a shift away from input-based subsidies toward performance-linked incentives tied to incremental sales over a base year, aimed at encouraging scale, technology adoption and deeper domestic value addition.

In electronics manufacturing and IT hardware, the scheme has helped position India as a major hub for mobile phones as well as products such as laptops, tablets and servers. Mobile phone imports have declined by nearly 77% since FY21, while more than 99% of domestic demand is now met through local production, the ministry said.

Manufacturing activity has also expanded beyond final assembly into printed circuit board assemblies, batteries, camera and display modules, and other sub-assemblies.

In pharmaceuticals, the scheme has enabled domestic manufacturing of 191 bulk drugs, resulting in import substitution of about ₹1,785 crore and raising domestic value addition to 83.7%. Indigenous production of biosimilars, monoclonal antibodies and medical devices has strengthened supply-chain resilience, it added.

In food processing, investments of more than ₹9,200 crore have been reported across approved projects, with companies adopting advanced packaging and processing technologies. The white goods segment, particularly air conditioners and LED lights, has begun domestic manufacturing of critical components such as compressors and LED drivers, with domestic value addition targeted at 75–80% by 2028–29.

The scheme has also supported a shift toward man-made fibre and technical textiles, while in renewable energy it aims to create 48 GW of fully integrated solar PV manufacturing capacity across two tranches, backed by investment commitments of nearly ₹52,942 crore.

“The PLI framework has played an important role in reducing import dependence across key sectors while simultaneously improving India’s integration into global value chains. By tying incentives to incremental production rather than upfront subsidies, the scheme creates clear performance benchmarks. This design enhances accountability and helps deliver tangible gains in output, exports and employment,” said Dr Dharmveer, assistant professor, department of economics, Delhi School of Economics.

The PLI scheme covers 14 strategic sectors, including mobile manufacturing and specified electronic components, as well as IT hardware such as laptops, tablets, servers and all-in-one personal computers.

In pharmaceuticals, it spans bulk drugs and high-value products including biopharmaceuticals, along with medical devices, while automobiles and auto components are covered under advanced automotive technology.

Other sectors include telecom and networking products, food processing, and white goods such as air conditioners and LED lights. The textiles segment focuses on man-made fibre apparel, MMF fabrics and technical textiles.

The remaining sectors are specialty steel, high-efficiency solar photovoltaic modules, advanced chemistry cell battery storage, and drones and drone components.