As of July 2025, the Indian Government has approved a total of 806 applications under the Production Linked Incentive (PLI) schemes, covering 14 strategic sectors, including electronics, pharmaceuticals, telecom, textiles, and automobiles.
Achievements and Impact
The PLI scheme, first announced in 2021 with a total outlay of INR 1.97 trillion (US$22.8 billion), aims to strengthen India’s industrial base and reduce import dependency by encouraging credible investments and enhancing production capabilities.
The scheme has achieved notable progress in reshaping India’s manufacturing landscape. As of August 2024, actual investments of ₹1.46 lakh crore have been realized, with projections indicating the figure will exceed ₹2 lakh crore within the next year. These investments have supported production and sales worth ₹12.50 lakh crore, while generating approximately 9.5 lakh direct and indirect jobs.
Exports have also registered strong growth, crossing ₹4 lakh crore, led by sectors such as electronics, pharmaceuticals, and food processing. These results reflect the strengthened domestic industrial base, rising global competitiveness of Indian products, and expanded employment opportunities that support the country’s broader economic objectives.
Higher Budget Allocations for 2025-26
The PLI scheme has significantly increased budget allocations for key sectors under the PLI Scheme in 2025-26, reaffirming its commitment to strengthening domestic manufacturing and improving the ease of doing business in India.
| PLI Schemes with the Highest Budget Allocation (2025-26) 1 | ||
| Name of the Scheme | Revised Estimates 2024-25 (₹ Crores) | Budget Estimates 2025-26 (₹ Crores) |
| Production Linked Incentive (PLI) Scheme in electronics manufacturing and IT hardware. |
5777.00 | 9000.00 |
| PLI for Automobiles and Auto Components | 346.87 | 2818.85 |
| PLI for Pharmaceuticals | 2150.50 | 2444.93 |
| PLI for Textile | 45.00 | 1148.00 |
| PLI for White Goods (ACs and LED Lights) | 213.57 | 444.54 |
| PLI for Specialty Steel | 55.00 | 305.00 |
| PLI for National Programme on Advanced Chemistry Cell (ACC) Battery Storage | 15.42 | 155.76 |
Conclusion
The Production Linked Incentive scheme continues to drive the growth of Indian manufacturing businesses, enabling them to scale revenue and benefit from performance-based incentives. With enhanced allocations to high-growth sectors, foreign companies planning to set up manufacturing bases in India can leverage these benefits and tap into the expanding opportunities in the market.
To fully capitalise on these opportunities, setting up a compliant and efficient business structure is essential. Working with a trusted Company Registration consultant in India can simplify this process and ensure a smooth market entry. India Company Incorporation supports global investors with end-to-end company registration services in India, covering entity selection, documentation, and regulatory approvals. This enables businesses to establish their presence efficiently while focusing on growth and maximising the benefits offered under the PLI scheme.Â
