Home India Ministry of Commerce and Industry Parliament Question: Objectives of PLI Scheme...
Date: 2025-07-22 Category: Not Applicable State: Union Government Country: India

Parliament Question: Objectives of PLI Scheme

Issued by Ministry of Commerce and Industry · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: The Ministry of Commerce and Industry addressed Lok Sabha Question 458 regarding the Production Linked Incentive (PLI) Scheme. The scheme, with an outlay of Rs. 1.97 lakh crore, aims to enhance India's manufacturing capabilities and exports across 14 key sectors, supporting the vision of "Atmanirbhar Bharat." As of March 2025, Rs. 1.76 lakh crore has been invested, resulting in Rs. 16.5 lakh crore in incremental production/sales and over 12 lakh jobs. The schemes are applicable across India, and the selection of the investment location is at the discretion of the applicants. Key Points / Main Content: Objectives and Scope of PLI Scheme: * The PLI Scheme aims to attract investments, ensure efficiency, achieve economies of scale, and enhance the global competitiveness of Indian manufacturers. * It covers 14 key sectors including: Mobile Manufacturing, Pharmaceuticals, Auto Components, Textiles, Solar PV Modules, and others. * Products approved under PLI Schemes align with national goals, increase production capacity, enhance global competitiveness and promote exports. * As of the current date, there are no approved proposals to add new sectors under the PLI Scheme. Implementation and Approvals: * 806 applications have been approved under the PLI Scheme across the 14 sectors. * Sectors were approved after vetting by NITI Aayog and detailed discussions with concerned Ministries/Departments. Financial and Production Impact: * Actual investment of Rs. 1.76 lakh crore has been realized till March 2025. * This has resulted in incremental production/sales of over Rs. 16.5 lakh crore. * Over 12 lakh direct and indirect jobs have been created. * Cumulative incentive amount of Rs. 21,534 crore have been disbursed as of June 24, 2025, under the PLI Scheme for 12 sectors. Sector-Specific Achievements: * The pharmaceuticals sector has witnessed cumulative sales of Rs. 2.66 lakh crore, including exports of Rs. 1.70 lakh crore in the first three years. * India has become a net exporter of bulk drugs. * Under the PLI Scheme for medical devices, 21 projects have started manufacturing 54 unique medical devices. * Mobile production increased by around 146% from INR 2,13,773 Cr in 2020-21 to INR 5,25,000 crore in 2024-25. * Mobile phone exports increased by around 775% from INR 22,870 crore in 2020-21 to INR 2,00,000 crore in 2024-25. Employment Generation in Tamil Nadu: * 126 manufacturing units have been established in Tamil Nadu under the PLI Scheme. * These units have generated 127,311 jobs across various sectors. Investment Location: * The selection of the investment location is at the discretion of the applicants. Government Initiatives: * Concerned Ministries/Departments take various initiatives to encourage setting up of companies across the country through respective action plans, programs, schemes, and policies for the sectors being dealt with by them. Impact Analysis: Manufacturers/Companies: * Impact: Opportunity to increase production, enhance global competitiveness, and benefit from financial incentives by investing in key sectors. * Action Required: Evaluate eligibility, prepare and submit applications, and adhere to scheme guidelines to avail benefits. Employees/Job Seekers: * Impact: Increased employment opportunities across various sectors due to the establishment of new manufacturing units. * Action Required: Explore job openings in PLI-supported projects, particularly in manufacturing and related industries. Government (Central and State): * Impact: Boost to the "Make in India" and "Atmanirbhar Bharat" initiatives, increased economic growth, and enhanced export capabilities. * Action Required: Monitor the progress of PLI schemes, address any implementation challenges, and continue to formulate supportive policies. Indian Economy: * Impact: Potential for significant growth in production, employment, and exports, leading to overall economic development. * Action Required: N/A Tamil Nadu: * Impact: Increased manufacturing activity, job creation, and economic development due to the establishment of PLI-supported projects. * Action Required: States/UTs also have their own Schemes for attracting investments.

Key Entities Referenced

Production Linked Incentive PLI Scheme: A government initiative to enhance India's manufacturing capabilities and exports by providing incentives to companies for increasing production in key sectors. Tamil Nadu: A state in southern India, specifically mentioned in the context of industrial development and the implementation of the PLI scheme. Dharmapuri: A constituency and a district in Tamil Nadu, mentioned as a potentially beneficiary region of the PLI scheme. NITI Aayog: A policy think tank of the Government of India that vetted the sectors approved under the PLI Schemes. Atmanirbhar Bharat: India's vision of becoming self-reliant, which is a key driver behind the implementation of the Production Linked Incentive (PLI) scheme. Ministry of Commerce and Industry: The Indian government ministry responsible for the promotion of industry and internal trade, overseeing the PLI scheme. Make in India: An initiative by the Government of India to encourage companies to manufacture their products in India. SHRI JITIN PRASADA: The Minister of State in the Ministry of Commerce and Industry who answered the Lok Sabha question regarding the PLI scheme.
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GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA UNSTARRED QUESTION NO. 458. TO BE ANSWERED ON TUESDAY, THE 22ND JULY, 2025. OBJECTIVES OF PLI SCHEME 458. SHRI MANI A: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) the primary objectives of the Production Linked Incentive (PLI) Scheme and the indicators used by the Government to assess its success, particularly in the context of industrial development in Tamil Nadu; (b) the total number of jobs created under various sectors through PLI-supported projects in Tamil Nadu and whether any employment opportunities have been generated in or around the Dharmapuri constituency; (c) whether the Government proposes to expand the scope of the PLI scheme further to incentivize manufacturing and promote employment generation in emerging industrial regions of Tamil Nadu such as Dharmapuri; and (d) if so, the details thereof, including the steps taken or proposed to be taken by the Government to ensure that backward districts like Dharmapuri benefit from the PLI scheme through industrial promotion and job creation? 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 (d): 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. The 14 sectors are: (i) Mobile Manufacturing and Specified Electronic Components, (ii) Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients, (iii) Manufacturing of Medical Devices (iv) Automobiles and Auto Components, (v) Pharmaceuticals Drugs, (vi) Specialty Steel, (vii) Telecom & Networking Products, (viii) Electronic/ Technology Products, (ix) White Goods (ACs and LEDs), (x) Food Products, (xi) Textile Products: MMF segment and technical textiles, (xii) High efficiency solar PV modules, (xiii) Advanced Chemistry Cell (ACC) Battery, and (xiv) Drones and Drone Components.The purpose of the PLI Schemes is to attract investments in key sectors and cutting-edge technology; ensure efficiency and bring economies of size and scale in the manufacturing sector and make Indian companies and manufacturers globally competitive. These schemes have the potential of significantly boosting production, employment and economic growth over the next five years or so. Approved products under PLI Schemes have been strategically selected to align with national goals, increase production capacity, enhance global competitiveness and promote exports in critical sectors such as electronics, renewable energy, pharmaceuticals, textiles etc., ensuring their alignment with the objectives of Make in India and Atmanirbhar Bharat. All the approved sectors identified under PLI Schemes follow the broad criteria of focusing on key technologies where India can leapfrog and multiply employment, exports and overall economic benefits for the economy. These sectors were approved after vetting by NITI Aayog and after detailed deliberations with concerned Ministries/ Departments. As on date, Union Cabinet has not approved any proposal to add any new sectors under PLI Schemes. As on date, 806 applications have been approved under PLI Schemes across 14 sectors. The details of the sector wise number of manufacturing units established and the employment generated under the scheme in Tamil Nadu is placed at Annexure I. The schemes are applicable across India, and the selection of the investment location is at the discretion of the applicants. Concerned Ministries/ Departments take various initiatives to encourage setting up of companies across the country through respective action plans, programmes, schemes and policies for the sectors being dealt by them, while States/UTs also have their own Schemes for attracting investments. Actual investment of Rs. 1.76 lakh crore have been realized till March 2025 across 14 sectors, which has resulted in incremental production/sales of over Rs. 16.5 lakh crore and employment generation of over 12 lakhs (direct and indirect). The impact of PLI Schemes has been significant across various sectors in India. These schemes have incentivized domestic manufacturing, leading to increased production, job creation and a boost in exports. The pharmaceuticals sector has witnessed cumulative sales of Rs. 2.66 lakh crore which includes exports of Rs. 1.70 lakh crore achieved in the first three years of the scheme. The scheme has contributed to India becoming a net exporter of bulk drugs (2280 cr.) from net importer (-1930 cr.) as was the case in FY 2021-22. It has also resulted in significant reduction in gap between the domestic manufacturing capacity and demand of critical drugs. Under the PLI Scheme for medical devices, 21 projects have started manufacturing of 54 unique medical devices, which include high end devices such as Linear Accelerator (LINAC), MRI, CT-Scan, Heart Valve, Stent,Dialyzer Machine, C-Arm, Cath Lab, Mammograph, MRI Coils, etc. The production of mobiles in value terms has increased by around 146% from INR 2,13,773 Cr in 2020-21 to INR 5,25,000 crore in 2024-25 as per industry association and DGCIS. During the same period, exports of mobile phones in value terms has increased by around 775% from INR 22,870 crore in 2020-21 to INR 2,00,000 crore in 2024-25. Cumulative incentive amount of Rs. 21,534 crore have been disbursed as on 24.06.2025 under PLI Scheme for 12 sectors, namely Large Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing, White Goods, Drones & Drone Components, Specialty Steel, Textile products and Automobiles & Auto components. ******ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE LOK SABHA UNSTARRED QUESTION 458 FOR ANSWER ON 22.07.2025. S. Sectors No. of Manufacturing Employment No. units Generated 1 Pharmaceuticals Drugs 16 3086 2 Large Scale Electronics 6 58301 Manufacturing 3 Telecom & Networking 13 2759 Products 4 Food Products 12 24431 5 Bulk Drugs 2 87 6 Manufacturing of Medical 2 113 Devices 7 White Goods (ACs & LEDs) 8 4236 8 Drones and Drone 3 318 Components 9 IT Hardware 2.0 9 1058 10 Automobiles & Auto 36 20417 Components 11 Textile Products: MMF Segment and 11 5295 Technical Textiles 12 High Efficiency Solar PV 3 5952 Modules (Tranche I & II) 13 Advance Chemistry Cell 1 611 (ACC) Battery 14 Specialty Steel 4 647 Total 126 127311 **********

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