PLI scheme boosts manufacturing, exports and jobs with ₹2 lakh crore investments

As of September 2025, the PLI schemes have delivered measurable outcomes in terms of investment realisation, production expansion, and job creation, according to periodic government reviews.

The Production Linked Incentive (PLI) programme has emerged as a key driver of India’s manufacturing revival, significantly strengthening domestic capacities, attracting large-scale investments, generating employment, and supporting export growth across multiple priority sectors. As of September 2025, the PLI schemes have delivered measurable outcomes in terms of investment realisation, production expansion, and job creation, according to periodic government reviews.

An actual investment of nearly ₹2 lakh crore has been realised across 14 approved sectors under the PLI framework up to September 2025. This investment has resulted in incremental production and sales exceeding ₹18.7 lakh crore, along with employment generation of over 12.6 lakh jobs, both direct and indirect. These outcomes underline the programme’s role in building scale, improving competitiveness, and reducing India’s dependence on imports in critical sectors.

The impact of the PLI scheme has been particularly notable in the pharmaceuticals and medical devices sectors. India has made significant progress in narrowing the gap between domestic manufacturing capacity and demand for critical drugs. Under the PLI scheme for medical devices, 21 projects have commenced manufacturing of 54 unique devices, including high-end and complex products such as Linear Accelerators (LINAC), MRI and CT scanners, heart valves, stents, dialyzer machines, C-Arms, Cath Labs, mammographs, and MRI coils. These developments have strengthened India’s position as a global pharmaceuticals hub, where it now ranks as the third-largest producer by volume. Exports account for nearly 50% of total pharmaceutical production, and the country has reduced reliance on imports by domestically manufacturing key bulk drugs such as Penicillin G.

The electronics and telecom sectors have also witnessed transformative growth. Domestic production of mobile phones rose sharply from ₹18,000 crore in 2014–15 to ₹5.45 lakh crore in 2024–25, marking a 28-fold increase. In the telecom sector, import substitution of nearly 60% has been achieved, with India becoming almost self-reliant in products such as antennae, GPON (Gigabit Passive Optical Network), and customer premises equipment (CPE). Several global technology companies have established manufacturing facilities in India, positioning the country as a major exporter of 4G and 5G telecom equipment.

Under the PLI scheme for white goods such as air conditioners and LED lights, 84 companies are set to invest ₹10,478 crore, strengthening domestic manufacturing capacity and reducing import dependence in these segments.

As of 30 September 2025, cumulative incentives amounting to ₹23,946 crore have been disbursed under the PLI scheme across 12 sectors. These include large-scale electronics manufacturing, IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom and networking products, food processing, white goods, drones and drone components, specialty steel, textile products, and automobiles and auto components.

India’s merchandise exports during April to October 2025 have shown resilience despite challenging global economic conditions. Electronic goods exports grew strongly by 41.94%, driven by robust demand for smartphones and consumer electronics in markets such as the United States, the UAE, and China. Agricultural exports, including rice, fruits, spices, coffee, and marine products, also recorded steady growth. Pharmaceutical exports rose by 6.46%, supported by demand from countries such as Nigeria and the USA. Engineering goods, India’s largest export category, registered growth of 5.35%, aided by higher shipments to destinations including Germany, the United Kingdom, and South Africa.

Overall, merchandise exports for the current financial year remain positive compared to the previous year, reflecting underlying resilience amid global economic volatility, geopolitical disruptions, and softer demand in some markets. While there is no conclusive evidence linking export trends directly to tariff-related actions, India’s export sectors continue to demonstrate strength and diversification. At the same time, declines in certain commodities highlight the need for continued export diversification, value addition, and expanded market access to sustain growth momentum.

To further support exporters, especially micro, small, and medium enterprises (MSMEs), the Ministry of Commerce & Industry has rolled out several initiatives. These include the Export Promotion Mission (EPM), approved by the Union Cabinet on 12 November 2025, with a total outlay of ₹25,060 crore over six years (FY 2025–31). The mission aims to address key bottlenecks faced by exporters, particularly MSMEs, and enhance India’s global export competitiveness.

Another major initiative is Bharat Trade Net (BTN), announced in the Union Budget 2025, which seeks to digitise trade documentation, improve access to export finance, and integrate India’s trade ecosystem with global standards. Programmes such as Districts as Export Hubs (DEH) and E-Commerce Export Hubs (ECEHs) are enabling MSMEs, start-ups, and artisans to access international markets at lower costs. Infrastructure improvements under the National Logistics Policy and PM Gati Shakti are reducing logistics costs and easing supply chain bottlenecks.

The government is also actively pursuing Free Trade Agreements (FTAs) to enhance market access. Recently, the Comprehensive Economic Partnership Agreement (CEPA) with the United Kingdom was signed, alongside efforts to strengthen regional and multilateral trade engagements.

In addition, employment and MSME growth are being supported through schemes such as the Prime Minister’s Employment Generation Programme (PMEGP), the Credit Guarantee Scheme for Micro and Small Enterprises, the Employment Linked Incentive (ELI) Scheme, and the Self Reliant India (SRI) Fund of Funds, which provides ₹50,000 crore in equity funding to high-potential MSMEs.

The PLI programme continues to be closely monitored through sectoral reviews by implementing ministries and at the Empowered Group of Secretaries (EGoS) level. While sectors such as pharmaceuticals, large-scale electronics, medical devices, and select textile segments have shown clear gains in domestic value addition and export competitiveness, other sectors are at varying stages of implementation and scale-up.

This information was provided by the Minister of State for Commerce & Industry, Shri Jitin Prasada, in a written reply in the Rajya Sabha.