Like a vast loom gathering threads from every corner of the economy, India’s production engine is weaving a new industrial tapestry.
Incentives Igniting Industry
The government has disbursed Rs 28,748 crore under PLI schemes for 14 sectors, including electronics and pharma, since the launch of the support measure to boost domestic manufacturing, the government on Friday said. In 2021, the government announced Production-Linked Incentive (PLI) schemes for 14 sectors with an outlay of Rs 1.97 lakh crore.
As many as 836 applications across 14 sectors, involving cumulative investment of over Rs 2.16 lakh crore, have been approved under the production linked incentive (PLI) scheme as of December 2025. These sectors have collectively recorded sales exceeding Rs 20.41 lakh crore and exports of more than Rs 8.3 lakh crore, according to the commerce and industry ministry. The initiative has generated employment for over 14.39 lakh people. “Rs 28,748 crore (has been) disbursed as on December 31, 2025,” it said.
The 14 sectors span large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, drones, specialty steel, textile products, automobiles and auto components.
From Assembly Lines to Global Value Chains
The scheme has significantly reduced India’s mobile phone imports—by nearly 77 per cent since 2020-21—while over 99 per cent of domestic demand is now met through local production. Manufacturing has evolved beyond basic assembly to include printed circuit board assemblies, batteries, camera and display modules, enclosures and other critical sub-assemblies, deepening integration with global value chains.
In pharmaceuticals and medical devices, the PLI initiative has enabled first-time domestic production of 191 bulk drugs, leading to import substitution worth approximately Rs 1,785 crore and raising domestic value addition to 83.7 per cent. In the auto sector, the scheme has spurred investments in electric mobility, power electronics and advanced safety systems. “Reported sales of Rs 32,879 crore in 2025-26 indicate early momentum in technology-led automotive manufacturing and supplier ecosystem development,” the ministry said.
Telecom and networking product sales have risen more than six-fold over 2019-20 levels, with exports reaching Rs 21,033 crore. In food processing, investments exceeding Rs 9,200 crore have been catalysed. “Domestic manufacturing has commenced for critical components including compressors, motors, copper tubes and LED drivers. Domestic value addition is targeted to increase to 75-80 per cent by 2028-29,” it said.
Under tranche I and II, the solar module PLI aims to build 48 GW of integrated solar PV capacity, backed by investment commitments of nearly Rs 52,942 crore.
From circuits to solar cells, the sparks of incentive are kindling a manufacturing renaissance.
Summary
Since 2021, the government’s PLI schemes across 14 sectors have disbursed Rs 28,748 crore, catalysing investments of over Rs 2.16 lakh crore and generating 14.39 lakh jobs. The initiative has boosted domestic manufacturing, cut imports, raised exports and deepened value addition in electronics, pharma, auto, telecom, food processing and solar modules, strengthening India’s global industrial integration.
