Beyond the Headlines: How India’s PLI Scheme is Rewiring Its Manufacturing DNA 

India’s PLI scheme has demonstrably accelerated manufacturing growth since 2021, with 806 approved projects driving over $20 billion in investment by mid-2025. The initiative generated 1.2 million jobs while boosting production across 14 strategic sectors to $190 billion. Transformative shifts emerged in key industries: electronics manufacturing surged 146%, with mobile exports exploding eightfold to $23 billion annually. Pharmaceuticals achieved a landmark reversal – transitioning from net importer to net exporter of essential bulk drugs within three years.

Though textiles grew steadily ($6B MMF exports), it faces stiff global competition. Rigorous performance tracking ensured $2.4 billion incentives were disbursed only after verified output milestones. With continued funding in FY2025-26, PLI has moved beyond pilot stage to establish foundational momentum for India’s “Make in India for the World” industrial vision.

Beyond the Headlines: How India’s PLI Scheme is Rewiring Its Manufacturing DNA 

India’s ambitious Production Linked Incentive (PLI) scheme, launched in 2021 with a hefty ₹1.97 trillion (US$22.8 billion) commitment, is demonstrably moving beyond policy promise into tangible economic transformation. The latest figures, current as of July 2025, paint a picture of accelerating momentum, with 806 projects approved across 14 strategic sectors, catalyzing over US$20.3 billion in realized investment and generating significant production, exports, and jobs. 

More Than Just Numbers: Strategic Shifts Unfolding 

While the headline figures are impressive, the real story lies in the structural shifts the PLI is driving within key industries: 

• Electronics: From Assembly to Export Powerhouse: The flagship electronics segment, particularly mobile manufacturing, has seen explosive growth. Production value has surged 146% from FY 2020-21 (₹2.13 trillion / US$24.6bn) to FY 2024-25 (₹5.25 trillion / US$60.7bn). More crucially, exports have skyrocketed nearly eightfold, jumping from ₹228.7 billion (US$2.6bn) to ₹2 trillion (US$23.1bn) in the same period. This isn’t just import substitution; it’s India actively capturing global market share. 

• Pharmaceuticals: Achieving Critical Self-Reliance: Perhaps the most striking turnaround is in pharma. Once a net importer of essential bulk drugs (APIs) to the tune of ₹19.3 billion (US$223m) in FY 2021-22, the sector leveraged the PLI to become a net exporter by FY 2024-25, recording exports worth ₹22.8 billion (US$264m). Total pharma sales under the scheme exceeded ₹2.66 trillion (US$30.7bn) in three years, including exports of ₹1.7 trillion (US$19.6bn). This strategic shift enhances India’s drug security and global standing. 

• Textiles: Steady Gains Amidst Global Competition: While growth hasn’t been as meteoric as electronics, textiles show positive, steady progress. Man-Made Fiber (MMF) exports reached US$6 billion in FY 2024-25, up from US$5.7 billion the previous year. Technical textiles also rose to US$3.36 billion from US$2.99 billion. Acknowledging the challenge from cost-competitive neighbors like Bangladesh and Vietnam is crucial context, highlighting that sustained growth requires ongoing innovation and efficiency gains. 

The Engine of Growth: Investment, Jobs, and Disciplined Incentives 

• Investment Catalyst: The scheme has demonstrably unlocked private capital, with ₹1.76 trillion (US$20.3bn) invested by March 2025. This investment directly fueled production and sales output worth ₹16.5 trillion (US$190.9bn). 

• Job Creation Powerhouse: Beyond balance sheets, the PLI impact is felt in livelihoods. Over 1.2 million direct and indirect jobs have been generated across the participating sectors, providing a significant socio-economic boost. 

• Performance-Linked Discipline: The government has disbursed ₹215.34 billion (US$2.4 billion) in incentives until June 2025. Crucially, this payout is rigorously tied to verified companies meeting specific investment and production milestones, ensuring taxpayer money drives real results. 

Looking Ahead: Sustained Commitment and Evolving Challenges 

The Union Budget for FY 2025-26 reaffirms the commitment, earmarking significant funding: 

• Electronics & IT Hardware: US$1.04 billion 

• Automobiles & Components: US$326.2 million 

• Textiles: US$132.8 million 

• Pharmaceuticals: US$28.3 million 

• Other Sectors (White Goods, Specialty Steel, Batteries): Continued support 

The Verdict: A Foundation Laid, Building Upwards 

India’s PLI scheme has unequivocally moved past its pilot phase. It has successfully attracted substantial investment, generated significant employment, and catalyzed demonstrable shifts in key sectors – particularly the remarkable turnarounds in electronics exports and pharmaceutical API self-sufficiency. While challenges like global competition in textiles persist, the scheme has laid a robust foundation for India’s “Make in India for the World” ambition. The sustained budgetary support signals a long-term vision.

The focus now must shift to ensuring these gains translate into deep-rooted industrial capability, continued innovation, and global competitiveness that endures beyond the incentive period. The PLI has ignited the engine; the journey towards becoming a global manufacturing hub is firmly underway.