New Delhi, September 1, 2025 – India’s Production Linked Incentive (PLI) scheme has attracted unprecedented investment commitments of ₹4.2 lakh crore across 14 key sectors, marking a significant milestone in the country’s manufacturing transformation journey.
The Ministry of Commerce and Industry revealed that the PLI scheme has generated employment for over 6.8 lakh people directly, with indirect employment creation estimated at 15 lakh positions. The electronics manufacturing sector leads with investment commitments of ₹1.8 lakh crore, followed by pharmaceuticals at ₹85,000 crore and automotive components at ₹75,000 crore.
Sectoral Performance Highlights:
The semiconductor manufacturing sector under PLI has witnessed remarkable growth, with three major fabrication units beginning operations in Karnataka, Gujarat, and Uttar Pradesh. These facilities are expected to reduce India’s semiconductor import dependency by 35% within the next two years.
Textile and apparel manufacturing has seen a 28% increase in production capacity, with new units established in Tamil Nadu, Maharashtra, and West Bengal. This expansion has positioned India to capture a larger share of the global textile market, currently valued at $1.3 trillion.
Economic Impact Analysis:
The PLI scheme’s success has contributed significantly to India’s industrial production growth, which registered a 7.8% increase in July 2025 compared to the same period last year. The manufacturing sector’s contribution to GDP has risen to 17.2%, moving closer to the government’s target of 20% by 2025.
Foreign Direct Investment (FDI) in manufacturing has increased by 42% year-on-year, reaching $28.4 billion in the first half of 2025. Major global companies including Apple, Samsung, Tesla, and Pfizer have expanded their Indian operations under the PLI framework.
Regional Distribution and Development:
The scheme has promoted balanced regional development with significant investments flowing to tier-2 and tier-3 cities. Uttar Pradesh leads with ₹95,000 crore in committed investments, followed by Gujarat at ₹78,000 crore and Karnataka at ₹65,000 crore.
The automotive sector has established new manufacturing hubs in Haryana and Tamil Nadu, while the pharmaceutical industry has concentrated expansion in Maharashtra, Gujarat, and Andhra Pradesh. This geographic distribution has created employment opportunities across multiple states.
Future Outlook and Challenges:
Industry experts predict that the PLI scheme will help India achieve manufacturing exports of $1 trillion by 2027, up from the current $450 billion. However, challenges remain in skill development, infrastructure connectivity, and raw material availability.
The government is addressing these concerns through complementary initiatives including the National Infrastructure Pipeline, Skill India programs, and strategic raw material reserves. These coordinated efforts are expected to sustain the manufacturing momentum and establish India as a global manufacturing hub.