PLI Schemes Drive Major Investment And Production Gains

31 Mar 2026 CW Team

The production linked incentive schemes have attracted investments of Rs 2,160 billion (bn) up to 31 December 2025 and driven production valued at Rs 20.41 trillion (tn) in the same period, while generating one point four three nine million (mn) jobs. The figures were disclosed in annexures submitted in response to a Rajya Sabha question on 27 March 2026. The disclosure reflects cumulative actuals reported under schemes across manufacturing and service sectors.

The schemes cover 15 manufacturing sectors including aerospace and defence, automotive and auto components, pharmaceuticals and medical devices, and new and renewable energy among others, and 12 service sectors including information technology and tourism. Officials indicated that the sectoral breadth is intended to boost domestic production, spur supply chains and reduce import dependence. Project approvals and support mechanisms were credited with encouraging investment commitments across regions.

Investment flows under the schemes rose from Rs 510 bn in the year to 2022-23 to Rs 1,180 bn in 2023-24 and Rs 1,760 bn in 2024-25 before reaching Rs 2,160 bn by December 2025. Reported production or sales showed a similar trajectory with Rs 4,500 bn in 2022-23, Rs 9,710 bn in 2023-24 and Rs 16,500 bn in 2024-25 progressing to Rs 20,410 bn by December 2025. The year on year increases were presented as evidence of accelerating industrial output under the incentive framework.

Employment under the schemes expanded steadily from zero point three million (mn) in the year to 2022-23 to zero point eight million (mn) in 2023-24 and one point two million (mn) in 2024-25, reaching one point four three nine million (mn) by the cut-off date. Authorities framed the rise in job creation as reflecting scaling of manufacturing capacities and associated services activity. Continued monitoring and policy adjustments were said to be planned to sustain investment and output growth.

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