India’s Production Linked Incentive (PLI) scheme is reshaping the manufacturing landscape, driving significant investments and job creation across various sectors. This strategic initiative has positioned India as a competitive player in the global market while reducing its reliance on imports.
Financial Milestones of the PLI Scheme
As of December 31, 2025, the PLI scheme has successfully attracted investments exceeding ₹2.16 lakh crore, resulting in the creation of over 14.39 lakh direct and indirect jobs. The cumulative sales generated by manufacturing units participating in this scheme have surpassed ₹20.41 lakh crore, and exports have reached impressive figures of ₹8.3 lakh crore. The government’s commitment is evident in the disbursement of ₹28,748 crore in production-linked incentives to eligible companies.
Strengthening Electronics Manufacturing
One of the most significant achievements of the PLI scheme is its positive impact on the electronics manufacturing sector. India is becoming a global hub for mobile phones and IT hardware. The reduction of mobile phone imports by nearly 77% since FY 2020–21 highlights the effectiveness of local manufacturing, with over 99% of domestic demand now satisfied locally.
The scope of production has evolved from simple assembly to more complex manufacturing processes, including printed circuit board assemblies (PCBAs), batteries, and various critical sub-assemblies. This deep integration into global value chains marks a significant milestone in India’s electronics sector.
Advancements in Pharmaceuticals
The PLI scheme has also made strides in the pharmaceutical industry, with 191 bulk drugs now being manufactured domestically for the first time. This shift has led to an import substitution worth approximately ₹1,785 crore, significantly increasing domestic value addition to 83.7%. The initiative has fostered the indigenous development of biosimilars, monoclonal antibodies, and new chemical entities, enhancing both pharmaceutical exports and the resilience of the supply chain.
Growth in Automotive and Telecom Sectors
The automotive industry has seen a surge in investments related to electric mobility and advanced safety systems, with reported sales reaching ₹32,879 crore in FY 2025–26. This reflects early success in technology-driven automotive manufacturing, which has begun to establish a robust supplier ecosystem.
In the telecom sector, there has been a remarkable increase in sales, more than sixfold compared to FY 2019–20, and exports have surged to ₹21,033 crore. The deployment of India’s indigenous end-to-end 4G technology stack by Bharat Sanchar Nigam Limited is a crucial milestone, showcasing the country’s technological capabilities.
Enhancements in Food Processing and Textiles
The food processing sector has received over ₹9,200 crore in investments through the PLI program. The adoption of advanced technologies, such as ARBBM spice processing systems and automated seafood processing equipment, has significantly improved quality and export readiness.
In the white goods category, domestic production has commenced for essential components like compressors and LED drivers, with a projected domestic value addition reaching 75–80% by 2028–29. The textiles sector is also evolving, with a focus on high-value man-made fibers and technical textiles, supported by the integration of PM MITRA Parks for enhanced manufacturing scale.
Renewable Energy Initiatives
Under the PLI scheme for high-efficiency solar PV modules, the government is aiming to establish 48 GW of fully integrated solar photovoltaic manufacturing capacity. Investment commitments nearing ₹52,942 crore are expected to significantly reduce import dependence in the renewable energy sector, further supporting India’s sustainability goals.
Conclusion
The PLI scheme stands as a cornerstone of India’s strategy to bolster its manufacturing capability, drive economic growth, and enhance export competitiveness. By continuously fostering innovation and local production, India is paving the way for a more self-reliant and robust economy.
- The PLI scheme has attracted over ₹2.16 lakh crore in investments.
- More than 14.39 lakh jobs have been created since its inception.
- Domestic electronics production has reduced imports by 77%.
- The pharmaceutical sector has achieved substantial import substitution.
- The automotive and telecom sectors are experiencing rapid growth.
- Significant advancements are being made in food processing and textiles.
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