NITI Aayog says sectors with strong industry participation have demonstrated encouraging outcomes under PLI Schemes

NITI Aayog today released the report titled “Impact Assessment of PLI Schemes”, prepared in collaboration with the Indian Institute of Management, Ahmedabad as the knowledge partner. The report recognizes the PLI Scheme as a flagship policy intervention launched by the Government of India to enhance India’s manufacturing competitiveness, integrate Indian firms into global value chains, and accelerate the journey towards an Atmanirbhar Bharat. By providing production-linked incentives to a select set of high-performing firms, the scheme is designed to be self-sustaining, encouraging adoption of advanced technologies, capacity creation, and sustained growth in output and exports.

Production Linked Incentive (PLI) Schemes, implemented by various Ministries and Departments, have emerged as a successful initiative for scaling up domestic manufacturing, investment and production, while strengthening India’s position in global value chains by driving exports, building domestic capabilities and enhancing competitiveness. Acting as a catalyst for industrial deepening, employment and export expansion, the initiative is advancing the vision of Viksit Bharat 2047 through a globally competitive manufacturing sector.

The report presents a sector-wise assessment of the Production Linked Incentive (PLI) Scheme across all 14 sectors notified by the Government of India, examining its impact on the key parameters of investment, additional production, exports, and employment generation. The assessment is based on sector-wise collection of firm-level data shared by implementing Ministries, supplemented by industry-level inputs from authenticated sources. Sectoral outcomes have been categorized into four broad groups: On-Track, Partial Impact, Insignificant Evidence of Impact, and Data unavailable; providing a structured and comparative overview of the scheme’s progress across sectors.

The report finds that sectors with strong industry participation have demonstrated encouraging outcomes under the scheme. Pharmaceuticals, Mobile Manufacturing under Large Scale Electronics Manufacturing (LSEM), Food Processing, Telecom, White Goods, Automobiles and Drones have shown notable progress in investment, production and capacity creation, with the Drones sector emerging as an early implementation success.

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