How has the PLI Scheme attracted Rs 1.76 lakh crore investments and created over 12 lakh jobs?
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Synopsis
Explore how India's Production Linked Incentive (PLI) scheme has revolutionized the manufacturing landscape by attracting Rs 1.76 lakh crore in investments and creating over 12 lakh jobs. Discover the sectors benefitting and the challenges ahead.
Key Takeaways
- The PLI scheme has attracted Rs 1.76 lakh crore in investments.
- Over 12 lakh jobs have been created through this initiative.
- 806 applications have been approved across 14 sectors.
- Electronics manufacturing has grown by 146 percent.
- Future reforms are needed to enhance the scheme's effectiveness.
New Delhi, Sep 21 (NationPress) The Production Linked Incentive (PLI) scheme in India has successfully attracted an impressive Rs 1.76 lakh crore in pledged investments since its inception in 2020, resulting in the creation of over 12 lakh jobs, according to a recent report.
This initiative has accepted 806 applications across 14 key sectors, primarily aimed at enhancing manufacturing in alignment with the Atmanirbhar Bharat initiative, as highlighted by a report from India Narrative.
The scheme motivates companies by providing incentives for increased sales that exceed a predetermined baseline. Initially, it focused on sectors such as mobile electronics, active pharmaceutical ingredients, and medical devices. Subsequently, sectors like automobiles, textiles, food processing, solar modules, semiconductors, and many others were included.
As a result of the PLI scheme, the electronics and mobile manufacturing sector witnessed a remarkable growth of 146 percent, skyrocketing from Rs 2.13 lakh crore in FY 2020-21 to Rs 5.25 lakh crore in FY 2024-25.
The automotive and auto-component sectors have attracted more than Rs 67,000 crore in investments.
By March 2025, participants in the PLI across all sectors are projected to report combined sales exceeding Rs 16.5 lakh crore, the report mentioned.
While Micro, Small and Medium Enterprises (MSMEs) gain indirect benefits, their direct involvement in PLI schemes is still limited. Addressing these limitations will be crucial for the scheme to fulfill its transformative potential.
However, several projects have faced execution delays, largely due to competition from countries like Vietnam and China, necessitating ongoing innovation in policy design and logistics infrastructure, as noted in the report.
While the electronics and pharmaceutical sectors are thriving due to the PLI scheme, others, such as textiles and white goods, require additional time to develop.
The report also emphasized that improved monitoring, supportive reforms in logistics and infrastructure, and increased budget allocations for FY 2025-26 will enhance the PLI's effectiveness, aiming to elevate the manufacturing sector's contribution to GDP to 25 percent.
Moreover, the scheme is anticipated to establish India’s presence in global supply chains for electronics, electric vehicles (EVs), and pharmaceuticals.
Point of View
I firmly believe that the Production Linked Incentive (PLI) scheme represents a significant step forward in India's manufacturing journey. It is crucial for the government to address the gaps in MSME participation and ensure that the benefits are widespread. Continuous innovation and strategic reforms will be essential for the scheme to fulfill its transformative potential.
NationPress
21/09/2025
Frequently Asked Questions
What is the PLI scheme?
The Production Linked Incentive (PLI) scheme is an initiative by the Indian government aimed at boosting manufacturing by providing financial incentives to companies for increasing sales beyond a set baseline.
How much investment has the PLI scheme attracted?
The PLI scheme has attracted a remarkable Rs 1.76 lakh crore in committed investments since its launch in 2020.
What sectors are covered under the PLI scheme?
The PLI scheme covers sectors such as electronics, pharmaceuticals, automobiles, textiles, food processing, solar modules, and semiconductors, among others.
How many jobs has the PLI scheme created?
The PLI scheme has created over 12 lakh jobs across various sectors since its inception.
What is the future outlook for the PLI scheme?
The PLI scheme is expected to strengthen India's position in global supply chains for electronics and pharmaceuticals, aiming to elevate the manufacturing sector's share in GDP to 25 percent.
