Centre Plans to Revamp PLI Schemes to Address Gaps in Underperforming Manufacturing Sectors

New Delhi: The Centre is considering changes to its Production Linked Incentive (PLI) schemes to address implementation gaps in underperforming sectors and strengthen domestic manufacturing, NITI Aayog CEO Anurag Jain said on Thursday.

NITI Aayog is holding consultations with various ministries to identify areas requiring improvements and make the schemes more effective in reducing India's dependence on imports.

"On the whole, we still have dependence on imports. We are trying to tweak the PLIs," Jain said.

Highlighting the progress made so far, NITI Aayog Vice-Chairman Ashok Lahiri said the schemes had attracted investments of Rs 2.40 lakh crore and generated an increase in production and sales worth Rs 22.66 lakh crore as of March 31, 2026. However, he noted that there was considerable scope to further strengthen India's manufacturing capabilities.

According to NITI Aayog's impact assessment released in November 2026, the PLI schemes have generated 8.49 lakh jobs so far. The government has disbursed Rs 35,354 crore in incentives, accounting for 18.5 per cent of the total allocated outlay. Nearly 70 per cent of the targeted segments are broadly progressing as planned.

However, the assessment highlights significant differences in performance across sectors. Large-scale electronics manufacturing and pharmaceuticals have emerged as strong performers, while the advanced chemistry cell (ACC) battery scheme continues to face major implementation challenges.

The electronics manufacturing sector has recorded substantial growth in production, exports, sales and employment. Pharmaceutical and food processing schemes have also delivered encouraging results in investment, output and job creation.

Under the white goods PLI scheme, investments have reached Rs 6,409 crore, while production has touched Rs 43,150 crore. Domestic value addition in the sector has increased from 20 per cent to 55 per cent. The medical devices scheme has recorded sales worth Rs 14,945 crore.

The solar PLI programme has also contributed to a major expansion in domestic manufacturing capacity, which has increased from 8 GW to nearly 116 GW. The drone scheme has made progress as well, with 77.5 per cent of its allocated funds already disbursed.

In contrast, the ACC battery scheme remains a major concern. Against its targeted manufacturing capacity of 50 GWh, only 1.4 GWh has been developed so far. Commercial production is yet to begin, and no incentives have been disbursed under the programme.

NITI Aayog identified technology gaps, dependence on imported machinery and project delays as some of the key reasons behind the slow progress.

Other sectors have also encountered implementation challenges. The IT hardware PLI scheme remains at an early stage, while telecom manufacturing continues to rely heavily on imported high-value components. Although the automobile scheme has attracted investments and boosted production, employment generation remains below the targeted level.

The assessment underscores that financial incentives alone are not sufficient to establish a competitive manufacturing ecosystem. Technology readiness, stronger domestic supply chains and timely project execution will be crucial to translating PLI investments into sustainable industrial capacity and reducing import dependence.

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