India’s manufacturing sector is witnessing a quiet yet powerful revolution, driven by the ambitious Production Linked Incentive (PLI) Scheme. With an outlay of ₹1.97 lakh crore, the scheme has become a cornerstone of India’s goal to elevate manufacturing’s share to 25% of GDP, positioning the country as a global industrial powerhouse. As of March 2025, the PLI initiative has approved 806 applications across 14 strategic sectors, attracting investments worth ₹1.76 lakh crore and generating over 12 lakh direct and indirect jobs.
Launched in April 2020, the PLI Scheme initially targeted mobile manufacturing, electronic components, pharmaceuticals, and medical devices. Its success prompted its expansion to 13 additional sectors, including automobiles, textiles, solar PV modules, and semiconductors. The scheme’s performance-based incentives, tied to incremental sales and production, have drawn both domestic and global players, fostering innovation and economies of scale. By November 2024, committed investments stood at ₹1.61 lakh crore, with total sales by PLI participants surpassing ₹16.5 lakh crore, reflecting robust growth in electronics, pharmaceuticals, and automotive sectors.
The electronics sector stands out as a flagship success. Backed by the National Policy on Electronics 2019, the PLI scheme has propelled India into the global electronics value chain. Production in this sector surged by 146%, from ₹2.13 lakh crore in FY 2020-21 to ₹5.25 lakh crore in FY 2024-25, with major smartphone companies shifting production to India. This has transformed India into a leading mobile phone manufacturing hub, making technology more accessible and affordable under the Digital India initiative.
In the automobile and auto components sector, the scheme has attracted ₹67,690 crore in committed investments, with ₹14,043 crore realized by March 2024, creating over 28,884 jobs. Aligned with the Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative, the PLI scheme is positioning India as a global hub for electric vehicles and clean technology, supporting 19 categories of advanced automotive technology vehicles and 103 categories of components.
The pharmaceutical sector has also seen remarkable progress. Once reliant on imports for bulk drugs, India has flipped the script, moving from a ₹1,930 crore trade deficit in FY 2021-22 to a ₹2,280 crore surplus in FY 2024-25. Pharma sales under PLI have crossed ₹2.66 lakh crore, including ₹1.70 lakh crore in exports, with domestic value addition reaching 83.7% by March 2025.
In the renewable energy space, the PLI scheme for high-efficiency solar PV modules is set to create 48 GW of fully integrated manufacturing capacity, reducing import dependence and bolstering energy security under the National Solar Mission. Investments of ₹48,120 crore have been committed, generating nearly 38,500 direct jobs as of June 2025.
The semiconductor sector is another success story. With six projects already underway and four new manufacturing units approved in Odisha, Punjab, and Andhra Pradesh, the India Semiconductor Mission, backed by ₹76,000 crore, is driving India’s integration into global electronics value chains. These projects, with an additional ₹4,600 crore outlay, are expected to create over 2,034 skilled jobs and spur indirect employment.
Textiles, food processing, and white goods (ACs and LED lights) are also reaping benefits. The textiles sector, with a ₹10,683 crore outlay, has boosted man-made fibre exports to ₹525 crore and technical textile exports to ₹294 crore in FY 2024-25. The food processing sector, with 171 approved applications, has seen investments of ₹8,910 crore, complementing schemes like PM-FME and PMKSY. Meanwhile, the white goods sector is transitioning India from an assembly hub to a high-value manufacturing base, targeting 75-80% domestic value addition by 2028-29.
Beyond numbers, the PLI scheme is reshaping India’s industrial landscape by fostering sector-specific clusters, such as semiconductor parks in Gujarat and medical device parks in Andhra Pradesh and Tamil Nadu. It is also catalyzing foreign direct investment and strengthening the MSME ecosystem by creating supplier and vendor networks around anchor units. The government’s increased budget allocations for 2025-26 signal a strong commitment to sustaining this momentum.
From reducing import dependency to boosting exports and creating jobs, the PLI scheme is more than a policy—it’s a catalyst for structural change. By aligning with national goals like Atmanirbhar Bharat and the $5 trillion economy vision, it is powering India’s industrial renaissance and cementing its place in global supply chains.