- PLI Scheme has attracted ₹1.76 lakh crore in investments and created over 12 lakh jobs by March 2025.
- Electronics sector production grew by 146%, with mobile exports rising 775% under the scheme.
- Partial incentive payouts seen in the telecom sector, with 21 out of 42 firms receiving incentives.
Production Linked Incentive (PLI) Scheme is a government scheme started to boost India’s manufacturing growth and investment. Since it began in April 2020, the PLI Scheme has become a main part of India’s industrial policy, matching important national goals like Atmanirbhar Bharat, Make in India, and Digital India. This article looks at the key features, sector-wise impact, investment details, and challenges of the PLI Scheme, giving you a clear picture of how this scheme is changing India’s manufacturing scene.
Key Features of the PLI Scheme
The PLI Scheme aims to raise the manufacturing sector’s share of India’s GDP to 25% by encouraging production and investment across 14 important sectors. With a budget of ₹1.97 lakh crore, the scheme supports sectors like electronics, pharmaceuticals, food processing, telecom, automobiles, textiles, white goods, specialty steel, and more.
It started with a focus on mobile manufacturing, electronic components, APIs, and medical devices, but expanded to cover more industries because of its success. The scheme works on a performance-linked incentive model, rewarding companies based on their growth in production and sales.
Sector-wise Impact and Growth Under PLI
The PLI Scheme has brought big changes to several key sectors:
Electronics Sector
Electronics production grew by 146%, going from ₹2.13 lakh crore in FY 2020-21 to ₹5.25 lakh crore in FY 2024-25. Mobile exports saw an amazing 775% rise, increasing from ₹22,870 crore to ₹2 lakh crore, making India a global hub for electronics manufacturing.
Pharmaceuticals Sector
Pharmaceutical sales under the scheme crossed ₹2.66 lakh crore, including ₹1.70 lakh crore in exports. India moved from being a net importer with a ₹1,930 crore deficit in FY 2021-22 to a net exporter with a ₹2,280 crore surplus in FY 2024-25, showing the scheme’s effect on healthcare independence.
Food Processing Sector
With 171 approved applications, the food processing sector attracted investments over ₹8,910 crore. Incentives worth ₹1,084 crore have been given out, encouraging growth and modernization in this important sector.
Telecom Sector
Although the telecom sector is part of the PLI Scheme, it has faced some challenges. By March 2025, only 21 out of 42 eligible firms received incentive payouts totaling ₹1,162 crore, showing partial uptake and sector-specific issues.
Investment and Job Creation Statistics
By March 2025, the PLI Scheme had attracted committed investments of ₹1.76 lakh crore and created over 12 lakh direct and indirect jobs. The scheme’s performance-linked incentives have led to ₹16.5 lakh crore worth of production, showing its success in driving industrial growth.
How PLI Supports National Initiatives
The PLI Scheme fits well with India’s bigger economic goals. It supports Atmanirbhar Bharat by promoting domestic manufacturing and cutting down import dependence. The scheme boosts the Make in India campaign by encouraging both domestic and global companies to invest in India. It also supports the Digital India initiative by increasing electronics and mobile manufacturing, and works alongside the ₹76,000-crore India Semiconductor Mission to improve local chip design and production.
Application and Approval Process for Manufacturers
Manufacturers who want to benefit from the PLI Scheme can apply through official government portals for each sector. The process includes submitting detailed project proposals, financials, and production plans. Applications are checked based on eligibility, investment promises, and potential for production growth. Approved applicants get performance-linked incentives based on actual production and sales growth during the scheme period.
Challenges and Partial Uptake in Certain Sectors
Even with its successes, the PLI Scheme faces challenges in some sectors. The telecom sector, for example, has seen only partial incentive payouts, with just half of eligible firms getting benefits by March 2025. Reasons include strict eligibility rules, delayed project starts, and sector-specific market conditions. Fixing these issues is important to get the most out of the scheme across all sectors.
Overall, the Production Linked Incentive Scheme is a strong driver for India’s manufacturing goals, encouraging investments, exports, and jobs. If you are a manufacturer or investor, looking into the PLI Scheme could open new chances for growth and working with the government’s vision for an independent India.