Executive Summary:
The Indian government implemented Production Linked Incentive (PLI) Schemes for 14 key sectors with an outlay of Rs. 1.97 lakh crore to enhance domestic manufacturing capabilities and exports, aligning with the vision of 'Atmanirbhar' (self-reliant) India. These schemes aim to attract investments, ensure efficiency, and make Indian manufacturers globally competitive. As of March 2025, the schemes have resulted in significant investment, production, and employment generation.
Key Points / Main Content:
Purpose and Sectors:
* The PLI Schemes aim to attract investments in key sectors and cutting-edge technology, ensure efficiency, and enhance global competitiveness.
* The schemes target 14 key sectors: Mobile Manufacturing and Specified Electronic Components; Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients; Manufacturing of Medical Devices; Automobiles and Auto Components; Pharmaceuticals Drugs; Specialty Steel; Telecom Networking Products; Electronic Technology Products; White Goods (ACs and LEDs); Food Products; Textile Products: MMF segment and technical textiles; High-efficiency solar PV modules; Advanced Chemistry Cell (ACC) Battery; and Drones and Drone Components.
Impact and Investment:
* The schemes are expected to significantly boost production, employment, and economic growth over the next five years.
* Actual investments of Rs. 1.76 lakh crore have been realized till March 2025 across 14 sectors, resulting in incremental production/sales of over Rs. 16.5 lakh crore and employment generation of over 12 lakhs (direct and indirect).
* There is evidence of increasing foreign investment, with companies like Apple shifting suppliers to India.
Progress and Review:
* PLI Schemes for all 14 Sectors have been notified, along with guidelines, by the concerned Ministries/Departments after due approval.
* Schemes are regularly reviewed by the concerned Ministries/Departments and the Empowered Group of Secretaries (EGoS).
Disbursement and Performance:
* Cumulative incentive amount of Rs. 21,534 crore has been disbursed as of 24.06.2025 under PLI Schemes for 12 sectors.
* 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, contributing to India becoming a net exporter of bulk drugs.
* Under the PLI Scheme for medical devices, 21 projects have started manufacturing 54 unique medical devices, including high-end equipment.
* Mobile phone production has increased by approximately 146% from INR 2,13,773 Cr in 2020-21 to INR 5,25,000 crore in 2024-25, with exports increasing by around 775% from INR 22,870 crore to INR 2,00,000 crore during the same period.
Impact Analysis:
Government of India (Ministries/Departments):
Impact: Responsible for notifying and implementing PLI schemes, reviewing progress, and disbursing incentives.
Action Required: Continue to monitor and review the progress of PLI schemes, address any implementation challenges, and ensure timely disbursement of incentives.
Indian Manufacturers/Companies:
Impact: Opportunity to enhance manufacturing capabilities, increase production, and become globally competitive.
Action Required: Invest in technology and infrastructure, expand production capacities, and leverage PLI incentives to boost exports.
Foreign Investors:
Impact: Opportunity to establish or expand operations in India, access incentives, and tap into the growing domestic market.
Action Required: Evaluate investment opportunities in key sectors, establish partnerships with Indian companies, and comply with PLI scheme guidelines.
Employees (Direct and Indirect):
Impact: Increased employment opportunities due to enhanced manufacturing activities.
Action Required: Develop skills and expertise required for the manufacturing sector and participate in training programs.
Key Entities Referenced
Production Linked Incentive PLI schemes: A government initiative to enhance India's manufacturing capabilities and exports across key sectors.
Ministry of Commerce and Industry: The Indian government ministry responsible for promoting industry and internal trade.
Atmanirbhar: India's vision of becoming self-reliant.
Mobile Manufacturing: One of the 14 key sectors covered under the Production Linked Incentive (PLI) scheme.
Pharmaceuticals Drugs: One of the 14 key sectors covered under the Production Linked Incentive (PLI) scheme.
Apple: A global smartphone company that has shifted its suppliers to India under the PLI Scheme.
Empowered Group of Secretaries EGoS: A group responsible for regularly reviewing the PLI Schemes.
Large Scale Electronics Manufacturing LSEM: One of the sectors for which cumulative incentive amount has been disbursed under PLI Scheme
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE
LOK SABHA
UNSTARRED QUESTION NO. 329.
TO BE ANSWERED ON TUESDAY, THE 22ND JULY, 2025.
PLI SCHEMES
329. SHRI MANOJ TIWARI:
DR. NISHIKANT DUBEY:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
वाणिज्य एवं उद्योग मंत्री
(a) whether the Government has implemented Production Linked Incentive (PLI)
schemes;
(b) if so, the details thereof along with the purpose of the schemes and the extent
to which these schemes attract foreign investments;
(c) whether the Government has reviewed the progress of the PLI schemes for all
the fourteen sectors;
(d) if so, the details thereof along with the performance and achievement made by
each sector; and
(e) the details of the amount disbursed and utilised under the scheme, sector,
scheme and project-wise?
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): 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.
(b): 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. There is
evidence of increasing foreign investment also in several PLI sectors. A number
of foreign companies have established or expanded their operations in India
under PLI Scheme. For example, Apple, a global smartphone company, has
shifted its suppliers to India viz. Foxconn, Wistron and Pegatron.
(c) to (e): 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).
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.
Individual cases have been approved over a period of time, through a
transparent mechanism. Projects are implemented over a period of time
ranging from 2 years to 3 years, depending on the nature of manufacturing and
claims are usually made after 1st year of production.
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