Image Source : The Economic Times
India’s flagship Production-Linked Incentive (PLI) Scheme has crossed a major milestone, attracting Rs 1.76 lakh crore in committed investments and generating over 12 lakh jobs across sectors, according to a government report released on September 21, 2025. The scheme, launched in 2020 to boost domestic manufacturing and reduce import dependency, has now emerged as a cornerstone of India’s industrial policy, driving growth in electronics, pharmaceuticals, textiles, and renewable energy.
The Ministry of Commerce and Industry confirmed that 18 sectors are currently covered under the PLI framework, with 746 projects approved and over 400 already operational. The scheme’s success is being seen as a validation of India’s shift toward targeted fiscal incentives and sector-specific industrial planning.
Key Highlights From The PLI Performance Report
• Rs 1.76 lakh crore in investment commitments received under the PLI Scheme
• Over 12 lakh direct and indirect jobs created across 18 sectors
• 746 projects approved, with 400+ already in production or construction phase
• Electronics, auto components, and pharmaceuticals lead in investment volume
• Export growth of 20 to 25 percent recorded in PLI-backed sectors
Sectoral Impact And Investment Distribution
1. Electronics And Semiconductors
The electronics sector has emerged as the top beneficiary, with over Rs 45,000 crore in investments. Mobile phone manufacturing, chip design, and component assembly have seen rapid expansion, with global players like Foxconn, Samsung, and Dixon Technologies scaling up operations.
2. Pharmaceuticals And Medical Devices
Rs 22,000 crore has been committed to pharma and med-tech projects, including bulk drug parks and diagnostic equipment units. The sector has added over 2 lakh jobs and improved India’s self-reliance in critical APIs and formulations.
3. Auto And Auto Components
Electric vehicle (EV) and battery manufacturing projects have attracted Rs 30,000 crore, with companies like Tata Motors, Ola Electric, and Mahindra Electric leading the charge. The sector has seen a 40 percent rise in domestic value addition.
4. Textiles And Apparel
Rs 19,000 crore has been invested in technical textiles and high-value apparel clusters. States like Tamil Nadu, Gujarat, and Uttar Pradesh have emerged as hubs, with over 1.5 lakh jobs created.
5. Renewable Energy And Green Hydrogen
Rs 15,000 crore has been committed to solar module manufacturing, battery storage, and green hydrogen pilots. The sector is expected to play a key role in meeting India’s net-zero goals.
Employment Generation And Skill Development
The report highlights that over 12 lakh jobs have been created, including 4.5 lakh direct employment and 7.5 lakh indirect opportunities through supply chains and ancillary services. The government has also launched skill development programs in partnership with NSDC and industry bodies to train workers in advanced manufacturing, robotics, and quality control.
States like Maharashtra, Tamil Nadu, Karnataka, and Gujarat have seen the highest job creation, while Tier II cities such as Indore, Coimbatore, and Surat are emerging as new manufacturing hubs.
Export Boost And Global Integration
PLI-backed sectors have recorded a 20 to 25 percent increase in exports, with mobile phones, APIs, and textiles leading the surge. India’s share in global electronics exports has risen from 1.5 percent to 3.2 percent in two years, while pharma exports have reached new markets in Africa and Latin America.
The scheme has also helped attract foreign direct investment (FDI), with over Rs 60,000 crore flowing into PLI-linked projects since 2021.
Looking Ahead
The government plans to expand the PLI Scheme to new sectors including toys, leather, and consumer electronics. A second round of approvals is expected for semiconductor fabs and EV battery gigafactories. Monitoring mechanisms have been strengthened to ensure timely disbursement of incentives and compliance with production targets.
With Rs 1.76 lakh crore already committed and 12 lakh jobs created, the PLI Scheme is not just a policy—it is a blueprint for India’s industrial resurgence.
Sources: Business Standard, Economic Times, PIB, Mint.
Advertisement
Advertisement
