India needs to prioritise sectors where it holds a competitive edge over other countries and address the challenges faced by various stakeholders to boost the nation’s exports. This was highlighted by Union Minister of Commerce and Industry, Piyush Goyal, during a review meeting on the Production Linked Incentive (PLI) Scheme, a key initiative aimed at making India self-reliant in manufacturing.

Goyal underscored the importance of achieving self-sufficiency in key sectors covered under the PLI Scheme. He advised Ministries to concentrate on building quality skilled manpower rather than focusing merely on numbers and called for collaborative efforts with the National Industrial Corridor Development Corporation (NICDC) to resolve infrastructure bottlenecks. He also recommended that a roadmap be prepared for the next five years, covering both investment and disbursement targets.

The meeting saw participation from all concerned Ministries.

The PLI Scheme, which is at various stages of implementation across 14 key sectors, has attracted investments of Rs 1.76 trillion. This investment has resulted in production and sales exceeding Rs 16.5 trillion and created employment opportunities for over 1.2 million people (direct and indirect) as of March 2025. Cumulative incentives amounting to Rs 215.34 billion have been disbursed under the PLI Schemes for 12 sectors, including Large-Scale Electronics Manufacturing, IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom and Networking Products, Food Processing, White Goods, Automobiles and Auto Components, Specialty Steel, Textiles, and Drones and Drone Components.

The PLI Schemes have significantly impacted various sectors by promoting domestic manufacturing, enhancing production, generating employment, and supporting exports.

In pharmaceuticals, the sector recorded cumulative sales of Rs 2.66 trillion, including exports of Rs 1.70 trillion in the first three years of the scheme. Export sales of eligible products for FY 2024-25 stood at Rs 0.67 trillion, accounting for around 27 per cent of India’s total pharma exports for the period. Approved companies invested Rs 151.02 billion — about 40 per cent of the total Rs 373.06 billion — in research and development for eligible products under the scheme. The sector achieved an overall domestic value addition of 83.7 per cent as of March 2025.

In bulk drugs, the scheme has strengthened domestic manufacturing of critical Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs). India transitioned from being a net importer (-Rs 19.30 billion in FY 2021-22) to a net exporter (Rs 22.80 billion) of bulk drugs, while narrowing the gap between domestic manufacturing capacity and demand for critical drugs.

In food processing, investments of Rs 90.32 billion under the PLI Scheme resulted in production and sales worth Rs 3.80 trillion and employment for 3,40,116 people (direct and indirect). The scheme’s requirement to use domestically grown agricultural produce (except additives, flavours, and edible oils) significantly boosted local raw material procurement, benefiting rural areas and supporting farmers’ incomes. MSMEs accounted for a major share of beneficiaries, with 70 directly enrolled and 40 involved as contract manufacturers for larger companies, driving innovation, competitiveness, market access, and job creation. Sales of value-added marine products grew at a CAGR of 22 per cent during the PLI period. Following the launch of the PLI Millet Scheme, sales of millet-based products rose 25-fold in FY 2024-25 compared to the base year (FY 2020-21). Millet procurement by PLI beneficiaries increased from 4,081 MT in FY 2022-23 to 16,130 MT in FY 2024-25, boosting rural household incomes.

In textiles, exports of Indian man-made fibre (MMF) textiles reached $ 6 billion in FY 2024-25, up from $ 5.7 billion in FY 2023-24. Exports of technical textiles rose to $ 3,356.5 million in FY 2024-25 from $ 2,986.6 million in the previous year.

News source: PIB