Home India COMMERCE AND INDUSTRY Parliament Question: Implementation and Progress of the Prod...
Date: 2026-02-03 Category: Not Applicable State: Union Government Country: India

Parliament Question: Implementation and Progress of the Production Linked Incentive (PLI) Scheme

Issued by COMMERCE AND INDUSTRY · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is the answer to Unstarred Question No. 601 in the Lok Sabha, scheduled for February 3, 2026, regarding the implementation and progress of the Production Linked Incentive (PLI) Scheme. It provides details on the financial outlay, approvals, disbursements, and outcomes of the PLI scheme as of September 2025. The purpose is to update the house about the current state and impact of the PLI schemes across 14 sectors. **Key Points / Main Content** * **PLI Scheme Overview:** * The PLI schemes were launched for 14 key sectors to enhance India's manufacturing capabilities and exports, in line with the "Atmanirbhar" vision. * The total approved financial outlay is Rs. 1.97 lakh crore. * The schemes are regularly reviewed by concerned Ministries/Departments and the Empowered Group of Secretaries (EGoS). * **Approvals and Investments:** * As of September 2025, 806 applications have been approved across the 14 sectors. * Actual investment of Rs. 2 lakh crore has been realized. * **Production, Employment and Exports:** * The scheme has led to incremental production/sales of over Rs. 18.7 lakh crore. * Employment generation of over 12.6 lakhs has been achieved. * Exports have surpassed Rs. 8.2 lakh crore. * Significant contributions come from sectors like electronics, pharmaceuticals, automobiles, and food processing. * **Disbursements:** * A cumulative incentive amount of Rs. 23,945 crore has been disbursed under PLI Schemes for 12 sectors. * The sectors include Large Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, White Goods, Automobiles & Auto components, Specialty Steel, Drones & Drone Components and Textiles. * Sector-wise approved outlay and cumulative disbursements up to September 2025 are provided in Annexure-I. * Year-wise disbursement details are given in Annexure-II. * **Disbursement Process Improvements:** * The government has implemented measures to facilitate the disbursement of incentive claims. * This includes quarterly disbursement of claims, fast-tracking regulatory approvals, and standardizing operating procedures. * A complete online claim process with a grievance redressal mechanism has been implemented. * **Scheme Status:** * The PLI Schemes are under implementation and are continuing as per their scheme tenures. **Impact Analysis** **Ministries/Departments**: * **Impact**: Ministries/Departments are responsible for notifying and regularly reviewing the PLI schemes for their respective sectors, ensuring compliance, and facilitating the disbursement of incentives. * **Action Required**: Ministries/Departments need to continue monitoring and evaluating the progress of the PLI schemes in their sectors, address any bottlenecks, and ensure timely disbursement of incentives to eligible beneficiaries. **State Governments**: * **Impact**: State Governments need to provide timely regulatory approvals and other necessary support to facilitate the setting up and operation of manufacturing units under the PLI scheme. * **Action Required**: State Governments need to coordinate with the concerned Ministries/Departments to fast-track regulatory approvals and provide necessary assistance to the companies participating in the PLI schemes. **Companies (Beneficiaries)**: * **Impact**: Companies that have been approved under the PLI scheme are expected to make investments, increase production, generate employment, and boost exports, contributing to India's manufacturing capabilities and economic growth. * **Action Required**: Companies need to comply with the guidelines of the PLI schemes, invest in expanding their manufacturing capacities, meet production targets, and claim incentives as per the scheme provisions.

Key Entities Referenced

Production Linked Incentive (PLI) Scheme: A scheme designed to enhance India's manufacturing capabilities and exports by providing incentives to companies in various sectors based on their production. Ministry of Commerce & Industry: The central ministry responsible for formulating and implementing policies related to India's external trade, domestic trade, and industrial development, including the PLI scheme. Empowered Group of Secretaries (EGoS): A high-level committee of secretaries responsible for regularly reviewing the PLI Schemes.
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GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 601. TO BE ANSWERED ON TUESDAY, THE 03RD FEBRUARY, 2026. IMPLEMENTATION AND PROGRESS OF THE PRODUCTION LINKED INCENTIVE (PLI) SCHEME 601. SHRI AZAD KIRTI JHA: SHRI E T MOHAMMED BASHEER: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) the total amount allocated, sanctioned, and disbursed under the Production Linked Incentive (PLI) Scheme since its inception, sector and year-wise; (b) the number of PLI-approved companies that have withdrawn from the scheme, failed to claim incentives or were disqualified due to non-compliance or underperformance, sector-wise and State-wise; (c) whether the Government has reviewed the causes of delays or underutilisation of funds under the PLI Scheme, if so, the details thereof; (d) whether the Government has evaluated the implementation and outcomes of the Production Linked Incentive (PLI) Scheme; and (e) if so, the actual investment realised and number of jobs created across all 14 sectors, along with a State-wise breakup of these achievements compared to the committed targets? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA) (a) to (e): Keeping in view India's vision of becoming 'Atmanirbhar', Production Linked Incentive (PLI) Schemes for 14 key sectors were announced with an outlay of Rs. 1.97 lakh crore to enhance India's Manufacturing capabilities and Exports. PLI Schemes for all 14 Sectors have been notified along with guidelines by the concerned Ministries/ Departments after due approval. These Schemes are regularly reviewed by the concerned Ministries/Departments as well as Empowered Group of Secretaries (EGoS). As on September 2025, 806 applications have been approved under Production Linked Incentive (PLI) Schemes across 14 sectors. Actual investment of Rs. 2 lakh crore have been realized which has resulted in incrementalproduction/sales of over Rs. 18.7 lakh crore, employment generation of over 12.6 lakhs, and exports surpassing Rs. 8.2 lakh crore with significant contributions from sectors such as electronics, pharmaceuticals, Automobiles and food processing. The cumulative incentive amount of Rs. 23,945 crore have been disbursed under PLI Schemes for 12 sectors, namely Large Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, White Goods, Automobiles & Auto components, Specialty Steel Drones & Drone Components and Textiles. The sector-wise approved outlay and cumulative disbursement up to September 2025 under PLI Scheme are given at Annexure-I, while the year- wise disbursement is provided at Annexure-II. Disbursements are recorded at the beneficiary level rather than on a state-wise basis, as companies may have manufacturing units located across different states. In order to address and facilitate the disbursement of incentive claims, the Ministries/ Departments have undertaken a number of steps which include the provision for quarterly disbursement of claims. Further, effective coordination between the State Governments and Ministries to fast-track regulatory approvals has reduced the project commissioning time. The Standard Operating Procedures developed by the respective Ministries/ Departments have reduced the compliances for claiming incentives. Complete online claim process along with the grievance redressal mechanism in the portal has also helped in timely disbursement of the claims. The Production Linked Incentive Schemes are under implementation and still continuing as per their scheme tenures. ********ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA UNSTARRED QUESTION NO. 601 FOR ANSWER ON 03.02.2026. Sector wise approved outlay and cumulative incentive disbursement under PLI (Rs. in Crore) Sl. Sectors Approved Cumulative incentive No. Outlay Disbursement till Sept, 2025 1 Pharmaceuticals Drugs 15,000 4,666 2 Bulk Drugs 6,940 55 3 Medical Devices 3,420 157 4 Automobiles & Auto Components 25,938 1,351 5 Advance Chemistry Cell (ACC) 18,100 00* Battery 6 Food Products 10,900 2,086 7 Large Scale Electronics 40,951 13,497 Manufacturing 8 IT Hardware 2.0 17,000 71 9 Telecom & Networking Products 12,195 1,586 10 High Efficiency Solar PV Modules - 4,500 00* Tranche I High Efficiency Solar PV Modules - 19,500 00* Tranche II 11 Specialty Steel 6,322 48 12 Textile Products: MMF segment and 10,683 54 technical textiles 13 White Goods (ACs & LED) 6,238 281 14 Drones and Drone Components 120 93 TOTAL 1,91,049 23,945 * The units are under Gestation period. *********ANNEXURE-II ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (e) OF THE LOK SABHA UNSTARRED QUESTION NO. 601 FOR ANSWER ON 03.02.2026. Year wise incentive disbursement under PLI S. No. Financial Year Incentive Disbursement 1 2022-23 2968 2 2023-24 6753 3 2024-25 10114 4 2025-26 (Till Sept 2025) 4110 TOTAL 23945 *********

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