India’s PLI Schemes Clears 806 Projects, Drives US$20 Billion in Investment

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Electronics, pharmaceuticals, and textiles lead India’s Production Linked Incentive (PLI) -backed manufacturing push, with 806 projects and US$2.4 billion in incentives disbursed.

As of July 21, 2025, India has approved a total of 806 applications under the Production Linked Incentive (PLI) schemes, covering 14 strategic sectors, including electronics, pharmaceuticals, telecom, textiles, and automobiles.

The PLI scheme was first announced in 2021 with a total outlay of INR 1.97 trillion (US$22.8 billion). It is designed to strengthen India’s industrial base and reduce import dependency by incentivizing companies that show credible investments and output.

Investment realization and employment generation

According to the Minister of State (MoS) for Commerce and Industry, Jitin Prasada, investments worth INR 1.76 trillion (US$20.3 billion) have been realized across 14 sectors by March 2025. These projects collectively generated over INR 16.5 trillion (US$190.9 billion) in production and sales output.

It has also boosted employment, with more than 1.2 million direct and indirect jobs generated across participating sectors.

The pharma sector turns into a net exporter of bulk drugs

The pharmaceutical industry has leveraged the PLI scheme to its advantage, building self-reliance in active pharmaceutical ingredients (APIs) and drug manufacturing. India, which was a net importer of bulk drugs worth INR 19.3 billion (approximately US$223.3 million) in FY 2021-22, transitioned to a net exporter, recording INR 22.8 billion (approximately US$263.9 million) in exports by FY 2024-25.

According to the Commerce Minister’s reply in Parliament, pharmaceutical sales under this PLI scheme have exceeded INR 2.66 trillion (approximately US$30.7 billion) over the first three years, including exports worth INR 1.7 trillion (approximately US$19.6 billion).

Surge in mobile manufacturing and exports

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The electronics manufacturing sector, a flagship focus of the PLI initiative, has also recorded sharp gains. In the mobile device manufacturing segment, production has increased by approximately 146 percent, rising from INR 2.13 trillion (US$24.6 billion) in FY 2020-21 to INR 5.25 trillion (US$60.7 billion) in FY 2024-25. Additionally, mobile phone exports have risen by almost eight times, growing from INR 228.70 billion (US$2.6 billion) in FY 2020-21 to INR 2 trillion (US$23.1 billion) in FY 2024-25.

See also: India Manufacturing Tracker 2025

India’s textile exports see moderate expansion

In textiles, export growth has been steadier but positive. As of March 2025, man-made fiber (MMF) exports reached US$6 billion in FY 2024-25, up from US$5.7 billion the previous year. Technical textile exports have also risen, increasing to US$3.36 billion from US$2.99 billion over the same period.

The growth has been slower than in other sectors due to competition from other cost-competitive exporters like Bangladesh and Vietnam.

PLI scheme incentives disbursed across 14 sectors

Until June 2025, a cumulative incentive amount of INR 215.34 billion (US$2.4 billion) has been disbursed under the PLI schemes. These disbursements are tied to verifiable output milestones and capital deployment.

The Union Budget for FY 2025–26 has also earmarked continued funding across the active PLI sectors.

PLI scheme

Budget estimates FY 2025-26 (US$ million)

Electronics manufacturing and Information Technology (IT) hardware

1,041.7

Automobiles and auto components

326.2

Pharmaceuticals

28.3

Textile

132.8

White goods (ACs and LED lights)

51.4

Specialty steel

35.3

National Program on Advanced Chemistry Cell (ACC) battery storage

18.0

Source: PIB

In brief

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The PLI scheme has moved well beyond its pilot stage, with high participation across over 14 important sectors. It has seen over US$21 billion in realized investment and credible progress in production and exports.

Electronics manufacturing under the PLI scheme has more than doubled in four years, and mobile exports have increased over eightfold. The pharmaceutical sector has shifted from importing bulk drugs to exporting them. 

(US$1 = INR 86.39)

Read more: India Updates Specialty Steel PLI Scheme to Drive Investments

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