PLI draws ₹1.76 lakh cr investment, 12 lakh jobs; Goyal calls for focus on India's core strengths

India's flagship Production Linked Incentive (PLI) Scheme has attracted investments worth ₹1.76 lakh crore across 14 key sectors, resulting in production/sales of over ₹16.5 lakh crore and generating over 12 lakh jobs (direct & indirect) till March 2025, according to the Ministry of Commerce and Industry. Commerce Minister Piyush Goyal, at the review meeting on the PLI Scheme today, said India must focus on the sectors in which it has a competitive edge over other countries and address the problems faced by various stakeholders so that the country’s exports can grow.

He said there's a need to become self-reliant in the key sectors covered under the PLI Scheme. He added that the ministries should focus on creating quality skilled manpower instead of focusing on quantity, and resolve infrastructure bottlenecks in collaboration with the NICDC.

A total incentive amount of ₹21,534 crore has been disbursed under PLI Schemes for 12 sectors, namely large-scale electronics manufacturing (LSEM), IT hardware, bulk drugs, medical devices, pharmaceuticals, telecom & networking products, food processing, white goods, automobiles & auto components, specialty steel, textiles, and drones & drone components.

The impact of PLI Schemes has been significant across various sectors in India. These schemes have incentivised domestic manufacturing, leading to increased production, job creation, and a boost in exports.

Some of the key sectors are:

Pharmaceutical Drugs: The sector has witnessed cumulative sales of ₹2.66 lakh crore, which includes exports of ₹1.70 lakh crore achieved in the first three years of the scheme. Export sales of eligible products under the scheme for FY 2024-25 were ₹0.67 lakh crore, which is approximately 27% of total pharma exports of the country during the same period. Of this, 40% of the total investment (₹37,306 crore,) amounting to ₹15,102 crore has been undertaken by the approved companies under Research & Development (R&D) for eligible products under the scheme. The overall domestic value addition in the sector has been 83.70% as of March 2025.

Bulk Drugs: The PLI Scheme for bulk drugs aims to boost domestic manufacturing of critical key starting materials (KSMs), drug intermediates (DIs), and active pharmaceutical ingredients (APIs) in India. The scheme has contributed to India becoming a net exporter of bulk drugs (₹2,280 crore) from a net importer (-₹1,930 crore), as was the case in FY 2021-22. It has also resulted in a significant reduction in the gap between the domestic manufacturing capacity and demand for critical drugs.

Food Products: The PLI Scheme for food products has attracted investments of ₹9,032 crore, resulting in production/sales worth ₹3.8 lakh crore and generating 3.4 lakh jobs. By mandating the use of domestically grown agricultural inputs, the scheme has boosted raw material procurement from rural and underdeveloped regions, supporting farmer incomes. A significant share of the beneficiaries are MSMEs, enhancing innovation and competitiveness in the food processing industry. Sales of value-added marine products grew at a 22% CAGR, while millet-based product sales rose 25-fold in FY25 over the base year FY21, driven by the dedicated PLI Millet Scheme.

Textiles: Exports of Indian Man-made Fibre (MMF) Textiles have reached $6 billion during FY 2024-25 as against exports of $5.7 billion during FY 2023-24. The overall exports of technical textiles from India reached $3,356.5 million during FY25 against exports of $2,986.6 million during FY24.