THEBUSINESSBYTES
BUREAU
NEW
DELHI, JULY 21, 2026
India's ambitious
Production Linked Incentive (PLI) schemes have emerged as a major driver of the
country's manufacturing transformation, attracting more than ₹2.40 lakh crore in investments,
generating over 14.15 lakh direct and indirect jobs, and enabling exports worth
over ₹15.2 lakh crore since their inception, said Minister
of State for Commerce and Industry Jitin Prasada in a written reply in the Lok
Sabha on Tuesday.
Launched across 14
key sectors with a total approved financial outlay of ₹1.91 lakh crore, the PLI schemes aim
to strengthen domestic manufacturing, attract global investments, boost
exports, create employment opportunities and enhance India's competitiveness in
global markets. The Department for Promotion of Industry
and Internal Trade (DPIIT) serves as the nodal agency for overall coordination
and monitoring, while the respective ministries oversee implementation in their
sectors.
As of March 31, 2026,
the schemes had translated into actual investments exceeding ₹2.40 lakh crore and created more
than 14.15 lakh jobs, underscoring their growing contribution to India's
industrial expansion.
The Minister
highlighted that the PLI initiatives have collectively facilitated exports of
over ₹15.2 lakh crore, reflecting India's
increasing integration into global value chains. Export performance has
accelerated significantly, with cumulative exports rising sharply from ₹4 lakh
crore as of March 31, 2024, to ₹15.2 lakh crore by March 31, 2026.
The electronics
manufacturing sector has emerged as one of the biggest success stories under
the programme. Mobile phone production has increased nearly 2.4 times since the
scheme was introduced, while imports have declined by about 77%. Today, around
99.2% of mobile phones used in India are manufactured domestically,
highlighting the country's growing self-reliance in electronics production.
The pharmaceutical
sector has also recorded strong gains, registering cumulative sales of more
than ₹3.64 lakh crore under the scheme.
The initiative has enabled the domestic production of 1,931 pharmaceutical
products, including 191 bulk drugs manufactured in India for the first time,
significantly strengthening the country's manufacturing
capabilities.
In the bulk drugs
segment, manufacturing capacity of nearly 55,000 metric tonnes has been
established across 26 critical Active Pharmaceutical Ingredients (APIs),
reducing import dependence for key medicines such as Paracetamol, Levofloxacin
and Norfloxacin.
The PLI scheme for
medical devices has accelerated domestic production of advanced healthcare
equipment, including CT scanners, MRI systems, Cath Labs and ultrasonography
machines. So far, 22 companies have commenced operations and 55 unique medical
devices have been commissioned under the programme.
India's telecom
manufacturing ecosystem has also received a major boost through the scheme,
supporting the development of indigenous 4G technology and strengthening
domestic manufacturing capabilities for 5G telecom equipment.
Meanwhile, the White
Goods PLI scheme has significantly expanded domestic manufacturing capacity.
Compressor production capacity has increased from one million units in 2021 to
10 million units in 2025-26, while localisation of critical components such as
printed circuit board assemblies (PCBAs) and cross-flow fans has improved
substantially, paving the way for domestic production of several key
air-conditioner components.
To ensure effective implementation, the government said the schemes are periodically reviewed by the Empowered Group of Secretaries (EGoS), chaired by the Cabinet Secretary, along with the concerned ministries and departments. Based on stakeholder feedback and implementation experience, modifications have been introduced wherever necessary to address operational challenges and improve execution.
The government has also undertaken several measures to enhance the effectiveness of the PLI schemes, including rationalisation of guidelines, relaxation of select eligibility conditions, stronger project monitoring, regular stakeholder consultations and faster resolution of implementation issues. These steps are aimed at improving scheme uptake, accelerating investments, boosting production and exports, creating employment and strengthening India's domestic manufacturing ecosystem.
