Flagship policy intervention has integrated Indian firms into global value chains
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, according to a report.
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, said NITI Aayog on 12 Nov in the report titled “Impact Assessment of PLI Schemes”, which was 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 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.
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.
Manufacturing capacity in High Efficiency Solar PV Modules has also expanded significantly, reflecting growing domestic capability and strengthening India’s renewable energy manufacturing ecosystem. The report further notes that sectors involving advanced and emerging technologies such as ACC Batteries, Specialty Steel and Technical Textiles are witnessing gradual capacity creation and ecosystem development, which are expected to contribute significantly to India’s long-term industrial growth trajectory. Across sectors, the scheme has played an important role in stimulating investment, enhancing manufacturing capacity and strengthening industrial competitiveness.
The report also highlights the importance of continued focus on deeper MSME participation, harmonized data systems and sustained ecosystem development to further strengthen sectoral outcomes and support long-term manufacturing growth.
Overall sectoral analysis suggests that nearly 70% of targeted segments are on track. The scheme has successfully stimulated investment and production beyond targets, though its long-term effectiveness will depend on deepening domestic value addition and strengthening supply chains.
By providing a structured, evidence-based and sector-specific assessment of the PLI Scheme, the report is expected to serve as a useful reference for policymakers, implementing Ministries, industry stakeholders and researchers in shaping a globally competitive, employment-generating and self-reliant manufacturing sector for India under the vision of Viksit Bharat@2047. Fiinews.com
