New Delhi: The Production Linked Incentive Scheme, with an outlay of ₹1.91 lakh crore, has approved 836 applications across 14 strategic sectors and driven strong investment, production and export growth.
Launched in 2020, the Production Linked Incentive Scheme aims to strengthen India’s manufacturing base and reduce import dependence. As of 31 December 2025, cumulative investment under the scheme exceeded ₹2.16 lakh crore. In addition, cumulative production and sales crossed ₹20.41 lakh crore, while exports surpassed ₹8.3 lakh crore. The initiative has generated more than 14.39 lakh direct and indirect jobs. Authorities have disbursed ₹28,748 crore in incentives so far.
In electronics and IT hardware, the scheme has positioned India as a major manufacturing hub. Mobile phone imports declined by nearly 77 percent since FY 2020–21. Moreover, local production now meets over 99 percent of domestic demand. Manufacturers expanded beyond assembly into key components such as printed circuit board assemblies, batteries and display modules.
In pharmaceuticals, companies began domestic production of 191 bulk drugs. This step reduced imports by about ₹1,785 crore and raised domestic value addition to 83.7 percent. Indigenous development of biosimilars and new chemical entities also strengthened export potential.
Production Linked Incentive Scheme expands localisation and exports
In automobiles and advanced automotive technology, reported sales of ₹32,879 crore in FY 2025–26 signalled early gains in electric mobility and power electronics. Similarly, telecom and networking product sales rose more than six-fold over the base year. Exports in this segment reached ₹21,033 crore, supported by deployment of an indigenous 4G technology stack by BSNL.
Food processing projects attracted over ₹9,200 crore in investments. Companies adopted advanced systems such as ARBBM spice processing and automated seafood equipment. In white goods, firms began manufacturing compressors, motors and LED drivers domestically, targeting 75–80 percent value addition by 2028–29.
The scheme also supported high-value textiles, especially man-made fibre and technical textiles. In renewable energy, it targets 48 GW of integrated solar PV capacity with investment commitments of nearly ₹52,942 crore.
By linking incentives to incremental sales, the Production Linked Incentive Scheme shifted policy from input-based support to measurable outcomes. As a result, it has strengthened domestic supply chains and improved global competitiveness across sectors.
