India’s manufacturing sector is undergoing a major transformation, driven by the Production Linked Incentive (PLI) Scheme. In 2025-26, the government has significantly increased budget allocations to boost domestic manufacturing. Key sectors benefiting from substantial hikes include Electronics and IT Hardware (₹5,777 crore to ₹9,000 crore), Automobiles and Auto Components (₹346.87 crore to ₹2,818.85 crore), and Textiles (₹45 crore to ₹1,148 crore), reinforcing India’s push for global competitiveness.
PLI Schemes with the Highest Budget Allocation
Name of the Scheme | Revised Estimates 2024-25 (₹ Crores) | Budget Estimates 2025-26 (₹ Crores) |
PLI Scheme in Electronics Manufacturing and IT Hardware | 5,777.00 | 9,000.00 |
PLI for Automobiles and Auto Components | 346.87 | 2,818.85 |
PLI for Pharmaceuticals | 2,150.50 | 2,444.93 |
PLI for Textile | 45.00 | 1,148.00 |
PLI for White Goods (ACs and LED Lights) | 213.57 | 444.54 |
PLI for Specialty Steel | 55.00 | 305.00 |
Sectors Covered Under PLI Scheme
The 14 sectors covered under the PLI Scheme include:
- Mobile Manufacturing and Specified Electronic Components
- Critical Key Starting Materials/Drug Intermediaries & Active Pharmaceutical Ingredients
- Manufacturing of Medical Devices
- Automobiles and Auto Components
- Pharmaceutical Drugs
- Specialty Steel
- Telecom & Networking Products
- Electronic/Technology Products
- White Goods (Air Conditioners and LEDs)
- Food Products
- Textile Products: MMF Segment and Technical Textiles
- High Efficiency Solar PV Modules
- Advanced Chemistry Cell (ACC) Battery
- Drones and Drone Components
Largescale Electronics Manufacturing (LSEM)
- Electronics (LSEM): Mobile phone production surged from 5.8 crore units (2014-15) to 33 crore (2023-24), with exports reaching 5 crore units and FDI rising by 254%.
- Pharmaceuticals & Medical Devices: India is now the third-largest pharma producer by volume, with 50% of output exported. Local production of bulk drugs and advanced medical devices has reduced import reliance.
- Automotive: The PLI scheme attracted ₹67,690 crore (US$ 8.15 billion) in investments, exceeding targets and boosting high-tech automotive production.
- Renewable Energy (Solar PV): The initiative aims to build 65 GW solar capacity with a ₹19,500 crore (US$ 2.35 billion) investment, promoting job creation and reducing imports.
- Telecom: India has achieved 60% import substitution, becoming a major exporter of 4G/5G telecom equipment.
- Drones: The sector’s turnover increased seven-fold, with MSMEs and startups driving growth, positioning India as a global drone manufacturing leader.
