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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
RAJYA SABHA
STARRED QUESTION NO. 164.
TO BE ANSWERED ON FRIDAY, THE 13TH FEBRUARY, 2026.
IMPACT OF PLI SCHEME ON INDIA'S INTEGRATION INTO GLOBAL
VALUE CHAINS
*164. SHRI AYODHYA RAMI REDDY ALLA:
Will the Minister of Commerce and Industry be pleased to state:
(a) the manner in which Production Linked Incentive (PLI) Scheme's focus on incentivizing
domestic manufacturing in 14 key sectors would impact India's integration into global
value chains, particularly in terms of navigating rules of origin and trade agreements;
and
(b) the potential implications of PLI Scheme on India's industrial policy landscape and the
manner in which this will shape the country's long-term competitiveness?
ANSWER
THE MINISTER OF COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)
(a) & (b): A statement is laid on the Table of the House.
******STATEMENT REFERRED TO IN REPLY TO RAJYA SABHA STARRED
QUESTION NO. 164 FOR ANSWER ON 13.02.2026
(a) & (b): The Production Linked Incentive (PLI) Scheme was designed with the
objective of attracting investments in sectors of core competency and cutting
edge technology, and enhance efficiency and economies of scale in the
manufacturing sector and make Indian manufacturing sector globally
competitive and to strategically enter certain sections of the global value
chains.
The Government launched (PLI) Schemes with a total financial outlay of ₹1.97
lakh crore covering 14 key sectors. The thrust sectors were selected based on
objective criteria such as high import dependency, export potential and
technology intensity. As on 30th September 2025, the PLI Schemes across 14
sectors have generated actual investments exceeding ₹2 lakh crore. These
investments span sectors including Large Scale Electronics Manufacturing
(LSEM), IT Hardware, Pharmaceuticals, Medical Devices, Automobiles and
Auto Components, Advanced Chemistry Cell Batteries, Telecom &
Networking Products, Food Processing, Textiles, Specialty Steel, White
Goods, and Drones & Drone Components.
A total of 806 production units have been approved across all 14 PLI sectors.
The investments made under the PLI Schemes have resulted in incremental
production and sales of over ₹18.70 lakh crore. Further, the schemes have
generated employment of over 12.60 lakh persons (direct and indirect). Exports
under the PLI Schemes have exceeded ₹8.2 lakh crore. Overall, the PLI
Schemes have contributed significantly to strengthening domestic
manufacturing capacity, boosting exports, generating employment and
reducing import dependence in these strategic sectors.
The sectoral impacts of Production Linked Incentive (PLI) schemes in the
various sectors is as under:
Exports under the 14 PLI schemes have increased to over ₹8.2
lakh crore since inception, reflecting India’s growing participation
in global production networks
In Large Scale Electronics Manufacturing, India now meets 99.2%
of domestic mobile phone demand through local manufacturing, while
exports have increased sharply, there is a 77% decline in mobile phone
imports (value terms) between FY2020-21 and FY2024-25,
demonstrating deeper backward integration into GVCs.
Telecom & Networking Products registered exports of ₹19,240
crore, with exports tripling in FY2024-25 over the base year (FY 2021-
22), supported by indigenous manufacturing by global OEMs such as
Nokia, Ericsson (via Jabil), and Cisco (via Flex).In sectors such as White Goods (ACs & LEDs), domestic value
addition has increased from about 20% in 2019 to about 55% in 2024.
Under the PLI Scheme for Pharmaceuticals, sales of eligible products
reached ₹3.16 lakh crore, with exports of ₹2.03 lakh crore up to
September 2025, and accounting for 30% of India’s bulk drug exports
and 26.5% of formulation exports in FY2024-25. The Scheme has
enabled domestic manufacture of 191 bulk drugs for the first time,
thereby strengthening India’s position as a reliable supplier in global
pharmaceutical value chains.
The PLI Scheme for Food Processing has led to a substantial increase
in domestic value addition in several value-added segments such as
marine products and mozzarella cheese, with sales of value-added
marine products growing at a CAGR of 22% during the PLI period.
Import substitution has been achieved and companies have shifted, to
a great extent, to domestic sourcing of tomato paste, replacing earlier
import dependence of up to 76%.
The PLI-Auto Scheme has catalysed investments exceeding ₹21,000
crore from major OEMs, supported by an institutionalized DVA
certification framework. As of November 2025, DVA certificates have
been issued for 130 products, ensuring verifiable domestic content. The
Scheme has promoted advanced automotive technologies, including EVs
and critical components, enhancing India’s integration into global
automotive supply chains.
With its focus on enhancing the economies of scale in strategically identified
sectors and with the incentives being linked to incremental production and
sales, with investment as a qualifying criteria, it is expected that the PLI
schemes will increase domestic value addition, thus bringing in manufacturing
of key inputs required for final products. This will not only deepen the presence
of domestically manufacturing goods in domestic markets, but also, on account
of improved competitiveness and domestic value addition, allow access to
preferential tariffs, satisfying the criteria of rules of origin under the various
trade agreements.
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