India’s Production Linked Incentive (PLI) scheme is making waves in the manufacturing world. Since launching in 2020, it has pulled in a whopping Rs 1.76 lakh crore in committed investments and created more than 12 lakh jobs, according to a new report from India Narrative.
This government push aligns with the Atmanirbhar Bharat initiative to build a self-reliant India. The scheme has greenlit 806 applications across 14 key sectors, rewarding companies for ramping up sales beyond a baseline threshold. It started with areas like mobile electronics, active pharmaceutical ingredients (APIs), and medical devices. Over time, it expanded to include automobiles, textiles, food processing, solar modules, semiconductors, and more.
Take electronics and mobile manufacturing, for example—they’ve skyrocketed by 146%. Sales jumped from Rs 2.13 lakh crore in fiscal year 2020-21 to Rs 5.25 lakh crore in 2024-25, thanks to the PLI boost.
The auto and auto-component side has seen even bigger commitments, with over Rs 67,000 crore in investments flowing in. Overall, PLI participants across all sectors hit combined sales of more than Rs 16.5 lakh crore by March 2025.
Small and medium enterprises (MSMEs) are reaping indirect benefits, but the report points out they need more direct access to the scheme. Closing these gaps could unlock the PLI’s full power to transform India’s economy.
That said, not everything is smooth sailing. Some projects have faced delays amid stiff competition from manufacturing giants like Vietnam and China. The report calls for smarter policy tweaks, better logistics, and upgraded infrastructure to keep India competitive.
Electronics and pharmaceuticals are leading the charge with strong growth, while sectors like textiles and white goods might need extra time to catch up. To supercharge the scheme, experts suggest tighter monitoring, logistics reforms, and bigger budgets for fiscal year 2025-26. These steps could help lift manufacturing’s share of India’s GDP to 25%.
Looking ahead, the PLI scheme positions India as a key player in global supply chains, especially for electronics, electric vehicles (EVs), and pharmaceuticals. It’s a smart move toward a stronger, more innovative manufacturing sector.
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