New Delhi [India], November 12 (ANI): India's Production Linked Incentive (PLI) schemes are expected to strengthen domestic manufacturing capabilities and improve the country's integration into global value chains, although deeper domestic value addition, employment generation and export competitiveness will remain critical to sustaining their long-term impact, according to a NITI Aayog assessment prepared in collaboration with IIM Ahmedabad.
The 14 PLI schemes have attracted cumulative investments of Rs 2.40 lakh crore and generated production worth Rs 22.66 lakh crore as of March 2026, while creating employment for 8.49 lakh individuals, the report said.
The schemes, which have a combined financial outlay of Rs 1.91 lakh crore, have disbursed Rs 35,354 crore in incentives, representing 18.51 per cent of the total allocation. The assessment noted that nearly 70 per cent of the targeted segments were broadly on track, with particularly strong outcomes in electronics, telecommunications and pharmaceutical drugs.
"Manufacturing has long been recognised as an engine of employment, innovation and productivity-led growth," NITI Aayog Vice Chairman Ashok Kumar Lahiri said.
The assessment found that cumulative investment had reached 76 per cent of the full-tenure target, while production and sales stood at 64 per cent of their corresponding targets. Employment, however, remained relatively behind at 28 per cent of the full-tenure target of 30.18 lakh jobs.
Large-scale electronics manufacturing emerged as one of the strongest-performing segments, recording significant growth in production, exports and employment. White goods manufacturing also demonstrated progress, with domestic value addition increasing from 20 per cent to 55 per cent.
However, the report highlighted implementation challenges across several sectors, including dependence on imported high-value components, technological constraints, project delays and uneven employment and export outcomes.
It also cautioned that higher investment does not necessarily translate into proportionate employment generation, particularly in capital-intensive and highly automated industries.
Lahiri said strengthening domestic capabilities would be essential for India to move beyond assembly towards advanced technologies and globally competitive production.
The report recommended continued monitoring, timely resolution of sector-specific bottlenecks and closer industry engagement. It also called for future manufacturing incentive programmes to combine supply-side support with demand-side incentives to encourage greater adoption of domestically manufactured products. (ANI)
PLI schemes attract Rs 2.4 lakh crore investment, generate Rs 22.66 lakh crore production: NITI Aayog report
