PLI Scheme with ₹1.91
Lakh Crore Outlay Drives Strong Industry Participation Across 14 Strategic Sectors
Ø PLI Scheme: Strengthening India’s Manufacturing
Ecosystem and Deepening Localization
Key Highlights
·
Scheme Overview:
o Launched in 2020 as a strategic reform
to strengthen India’s manufacturing base.
o Incentive outlay: ₹1.91 lakh
crore.
o Focus: Reduce import dependence, enhance
competitiveness, generate employment.
o Incentives tied to incremental production
and sales (outcome-based support).
·
Performance (as of 31 Dec 2025):
o 836 applications approved across 14 sectors.
o ₹2.16 lakh crore investment mobilized.
o ₹20.41 lakh crore cumulative sales achieved.
o ₹8.3 lakh crore exports generated.
o 14.39 lakh jobs created (direct & indirect).
o ₹28,748 crore incentives disbursed.
Sectoral Impact
·
Electronics & IT Hardware:
o India now meets 99% of mobile demand
domestically.
o Imports declined by 77% since FY 2020–21.
o Expanded manufacturing of PCBs, batteries,
camera/display modules, enclosures.
·
Pharmaceuticals & Medical Devices:
o First-time domestic production of 191
bulk drugs.
o Import substitution worth ₹1,785
crore.
o Indigenous biosimilars, monoclonal antibodies,
medical devices.
·
Automobiles & Advanced Automotive Tech:
o Investments in EVs, power electronics,
safety systems.
o FY 2025–26 sales: ₹32,879 crore.
·
Telecom & Networking Products:
o Sales up 6x over base year (FY
2019–20).
o Exports: ₹21,033 crore.
o Deployment of indigenous end-to-end
4G stack by BSNL.
·
Food Processing:
o Investments: ₹9,200 crore.
o Adoption of advanced processing and packaging
technologies.
·
White Goods (ACs & LED Lights):
o Domestic manufacturing of compressors,
motors, copper tubes, LED drivers.
o Value addition target: 75–80% by 2028–29.
·
Textiles (MMF & Technical Textiles):
o Shift toward high-value products.
o Integration with PM MITRA Parks
for scale and logistics.
·
Solar PV Modules:
o Target: 48 GW integrated capacity
under Tranche I & II.
o Investment commitments: ₹52,942
crore.
Strategic Significance
·
Transition from import dependence to domestic capability.
·
Strengthens supply chains, boosts exports, and generates employment.
·
Encourages technology adoption, localization, and global value chain integration.
·
Marks a paradigm shift from input-based incentives to performance-linked
outcomes.
The PLI Scheme has become a cornerstone
of India’s industrial policy, driving investment, localization, and competitiveness
across critical sectors.
[ABS News Service/21.02.2026]
The Production Linked Incentive (PLI)
Scheme, with an incentive outlay of ₹1.91 lakh crore, represents a strategic
reform initiative aimed at strengthening India’s manufacturing base. With 836 applications
approved across 14 strategic sectors, the Scheme reflects strong industry confidence
and robust adoption. Since its launch, the PLI Scheme has demonstrated sustained
uptake by industry and consistent expansion of manufacturing capacity.
As on 31 December 2025, the cumulative
performance under the Scheme is as follows:
1. Approved Applications: 836 applications across 14 sectors.
2. Investment: Cumulative investment exceeding ₹2.16
lakh crore.
3. Production / Sales: Cumulative sales exceeding ₹20.41
lakh crore.
4. Exports: Cumulative exports exceeding ₹8.3
lakh crore.
5. Employment: More than 14.39 lakh direct and indirect
jobs generated.
6. Incentive Disbursement: ₹28,748 crore disbursed as on 31
December 2025.
These outcomes indicate sustained momentum
in investment inflows, production expansion, export growth and employment generation
across targeted sectors.
The positive impact of the Scheme across
key sectors is summarized below:
Electronics Manufacturing & IT Hardware
The PLI Scheme has strengthened India’s
electronics manufacturing ecosystem, positioning the country as a major hub for
mobile phones and IT hardware products such as laptops, tablets, servers and all-in-one
personal computers. Mobile phone imports have declined by nearly 77 per cent since
FY 2020–21, while over 99 per cent of domestic demand is now met through local production.
Manufacturing has expanded beyond assembly to include printed circuit board assemblies,
batteries, camera and display modules, enclosures and other critical sub-assemblies,
enabling deeper integration with global value chains. Domestic manufacturing capacity
for IT hardware has also expanded, with progressive localisation of components reducing
dependence on imports.
Pharmaceuticals &
Medical Devices
The Scheme has enabled first-time domestic
manufacturing of 191 bulk drugs, resulting in import substitution of approximately
₹1,785 crore and increasing domestic value addition to 83.7 per cent. Indigenous
development of biosimilars, monoclonal antibodies and new chemical entities has
strengthened pharmaceutical exports and supply chain resilience. Indigenous manufacturing
of medical devices such as imaging systems, implants and diagnostic equipment has
reduced import dependence through adoption of globally benchmarked quality systems.
Automobiles and Advanced Automotive Technology
The Scheme has catalysed investments in
electric mobility, power electronics and advanced safety systems. Reported sales
of ₹32,879 crore in FY 2025–26 indicate early momentum in technology-led automotive
manufacturing and supplier ecosystem development.
Telecom and Networking Products
Sales of telecom and networking products
have increased more than six-fold over the base year (FY 2019–20), while exports
have risen to ₹21,033 crore. A significant milestone has been the deployment
of India’s indigenous end-to-end 4G technology stack by BSNL, positioning India
among a select group of countries with such capability.
Food Processing
PLI has catalysed investments of over
₹9,200 crore across approved projects. Adoption of advanced technologies such
as ARBBM spice processing systems, Tetra Recart packaging
and automated seafood processing equipment has enhanced efficiency, quality and
export readiness.
White Goods – Air Conditioners and LED
Lights
Domestic manufacturing has commenced for
critical components including compressors, motors, copper tubes and LED drivers.
Domestic value addition is targeted to increase to 75–80 per cent by 2028–29, strengthening
the component ecosystem.
Textiles – MMF and Technical Textiles
The Scheme has supported a shift towards
high-value man-made fibre and technical textile products, with integration of PM
MITRA Parks enabling scale manufacturing and improved logistics.
High Efficiency Solar
PV Modules
Under Tranche I and II, the Scheme targets
48 GW of fully integrated solar PV manufacturing capacity, with investment commitments
of nearly ₹52,942 crore, significantly reducing import dependence in the renewable
energy sector.
From a phase of relatively higher import
dependence, India’s manufacturing ecosystem is witnessing progressive strengthening
of domestic capabilities, with the Production Linked Incentive (PLI) Scheme contributing
to this transition. Supported by sustained investment, expansion of production capacity,
growth in exports and employment generation, the Scheme has emerged as an important
policy instrument for enhancing manufacturing competitiveness.
By supporting strategic sectors, encouraging
technology adoption and strengthening domestic supply chains, the PLI Scheme is
contributing to deeper localisation, improved integration with global value chains
and the long-term strengthening of India’s manufacturing base.
The Production Linked Incentive (PLI)
Scheme was launched in 2020 as a strategic reform initiative to strengthen India’s
manufacturing base, reduce import dependence, enhance global competitiveness and
generate employment. The Scheme incentivises incremental production through performance-linked
financial incentives, thereby enabling scale, technology adoption and supply chain
integration.
The PLI framework marked a paradigm shift
from traditional input-based incentives to outcome-linked support, wherein incentives
are directly tied to incremental sales of goods manufactured in India over a defined
base year. This approach ensures efficiency, transparency and measurable industrial
outcomes, while encouraging firms to expand capacity, deepen domestic value addition
and improve productivity.