Centre to tweak PLI scheme to boost weak sectors

New Delhi: NITI Aayog is holding consultations with various ministries to further strengthen the Production Linked Incentive (PLI) schemes to address gaps in some sectors so that domestic manufacturing capabilities get another booster shot to reduce dependence on imports, its CEO Anurag Jain said on Thursday.

While the schemes have 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, there remains considerable scope to improve India's manufacturing capabilities, NITI Aayog Vice-Chairman Ashok Lahiri said.

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

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

However, implementation has varied sharply across industries, with electronics and pharmaceuticals emerging as stronger performers while the advanced chemistry cell (ACC) battery scheme continues to lag.

Large-scale electronics manufacturing ranks among the strongest performers, recording substantial gains in production, exports, sales and employment. The pharmaceutical and food processing schemes have also delivered encouraging results across investment, output and job creation.

The white goods scheme has attracted Rs 6,409 crore in investments and generated Rs 43,150 crore in production. Domestic value addition in the sector has increased from 20 per cent to 55 per cent. Meanwhile, the medical devices scheme has recorded Rs 14,945 crore in sales.

The solar PLI programme has supported a significant expansion in domestic manufacturing capacity, from 8 GW to nearly 116 GW. The drone scheme has also made progress, with 77.5 per cent of its allocated funds disbursed.

However, the ACC battery scheme remains the weakest link. Against its targeted 50 GWh manufacturing capacity, only 1.4 GWh has been developed. No commercial production has started, and no incentives have been disbursed under the programme.

NITI Aayog identified technology gaps, dependence on imported machinery and project delays as key obstacles. Other schemes also face challenges.

IT hardware PLI remains at an early stage, while telecom manufacturing continues to depend heavily on imported high-value components. The auto scheme has attracted investment and boosted production, but employment remains below target.

The assessment highlights that financial incentives alone cannot guarantee manufacturing success. Technology readiness, domestic supply chains, and execution timelines will determine how effectively India converts PLI investments into long-term industrial capacity.

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