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New Delhi: Nearly 70 percent of the segments covered under the government’s Production Linked Incentive (PLI) schemes are broadly on track, with electronics, telecom and pharmaceuticals emerging as the strongest performers, according to a NITI Aayog assessment released on Thursday.
The report, titled Impact Assessment of PLI Schemes, said the initiative had attracted cumulative investments of Rs 2,40,138 crore, generated production worth Rs 22,66,412 crore and created employment for 8,49,069 people as of March 2026.
However, incentive disbursements stood at Rs 35,354 crore, representing just 18.51 percent of the combined Rs 1,91,049 crore allocation across 14 sectors.
“The assessment indicates that the production linked incentive (PLI) scheme is beginning to generate meaningful additionality across several sectors,” the report said.
Large Scale Electronics Manufacturing (LSEM), with an allocation of Rs 34,193 crore, has emerged as one of the most successful PLI segments, particularly in mobile phone manufacturing.
The sector has recorded significant growth in production, exports, sales and employment, supported by investments from domestic and multinational companies.
NITI Aayog said the scheme has also laid the foundation for the Electronics Component Manufacturing Scheme (ECMS), which carries an allocation of Rs 40,000 crore.
The Pharmaceuticals Drugs PLI scheme, with an outlay of Rs 15,000 crore, has also delivered broadly positive results across investment, production, employment and exports.
Large pharmaceutical companies have performed particularly well, benefiting from economies of scale and global market integration. Mid-sized firms have shown steady improvement, while MSMEs continue to face challenges, particularly in export competitiveness.
The separate Pharma Bulk Drugs scheme, with an allocation of Rs 6,940 crore, has recorded varying outcomes across its four targeted segments.
The Automobile and Auto Components PLI scheme, carrying an allocation of Rs 25,938 crore, attracted investments of Rs 44,326 crore by March 2026.
Telecom and speciality steel have also demonstrated encouraging progress in investment and production, although the report identified scope for improvement in employment generation, exports and domestic value addition.
Meanwhile, the Drones and Drone Components PLI scheme, with a relatively modest allocation of Rs 120 crore, has shown strong early momentum. Around 77.5 percent of its allocated funds had been disbursed during the assessment period.
The assessment highlighted uneven progress across sectors, particularly in newer and capital-intensive industries.
Advanced Chemistry Cell (ACC) batteries and advanced electronic components remain at relatively early stages of implementation, with substantial investments still tied up in capacity creation and commissioning.
NITI Aayog attributed these differences to varying investment cycles, scheme maturity and sector-specific challenges.
The findings suggest that while the PLI framework has successfully mobilised substantial private investment, translating these commitments into sustained production, employment, exports and domestic value addition remains a key challenge.
Releasing the report, NITI Aayog Vice Chairman Ashok Kumar Lahiri emphasised the importance of manufacturing in India’s long-term economic transformation.
“For India, as it advances towards the vision of Viksit Bharat @2047, strengthening manufacturing capabilities will be central to sustaining high, inclusive and broad-based growth,” Lahiri said.
NITI Aayog CEO Anurag Jain said India’s real manufacturing Gross Value Added (GVA) increased from Rs 34.82 lakh crore in FY23 to Rs 47.47 lakh crore in FY26, registering a compound annual growth rate of 10.88 percent.
The report underscores the need to accelerate implementation and strengthen domestic supply chains, particularly in sectors where investment commitments have yet to translate into commercial production.
With less than one-fifth of the overall incentive allocation disbursed so far, the next phase of the PLI programme will be critical in determining whether India’s manufacturing push can deliver sustained industrial competitiveness and deeper domestic value addition.
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