Boosting India’s Manufacturing and Export Potential: The Impact of Production Linked Incentive (PLI) Schemes

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Dated: 13.12.2025

Boosting India’s Manufacturing and Export Potential: The Impact of Production Linked Incentive (PLI) Schemes

India’s manufacturing and export sectors are witnessing a transformative shift, thanks to the Government’s Production Linked Incentive (PLI) schemes. Launched across 14 priority sectors, the PLI programme has significantly enhanced domestic manufacturing capacities, attracted large-scale investments, and bolstered export performance. As of September 2025, the scheme has achieved remarkable milestones, setting the stage for India’s emergence as a global manufacturing and export powerhouse.

Key Achievements of the PLI Scheme 

Massive Investments and Employment Generation The PLI schemes have driven investments worth ₹2 lakh crore across 14 sectors, resulting in incremental production and sales of over ₹18.7 lakh crore. This has directly and indirectly created over 12.6 lakh jobs, showcasing the programme’s potential to transform India’s economic landscape.
Sectoral Success Stories
- Medical Devices: Under the PLI scheme, 21 projects have commenced manufacturing 54 unique medical devices, including high-end equipment like MRI machines, CT scans, and heart valves. India has reduced its reliance on imports and strengthened its position as the third-largest player in the global pharmaceuticals market. Exports now account for 50% of production, with key bulk drugs like Penicillin G being manufactured domestically.
- Electronics and Telecom: Domestic production of mobile phones has surged from ₹18,000 crore in 2014–15 to ₹5.45 lakh crore in 2024–25, a 28-fold increase. Import substitution of 60% has been achieved in the telecom sector, with India becoming nearly self-reliant in manufacturing critical components like antennae and 4G/5G telecom equipment.
- White Goods: Investments of ₹10,478 crore by 84 companies under the PLI scheme for air conditioners and LED lights have strengthened domestic manufacturing capacity in these segments.
Export Growth Amid Global Challenges Despite global economic volatility, India’s merchandise exports demonstrated resilience during April to October 2025. Key sectors like electronic goods grew by 41.94%, driven by strong demand in markets such as the USA, UAE, and China. Agricultural exports, pharmaceutical shipments, and engineering goods also showed steady growth, reflecting India’s diversified export portfolio.

Supporting MSME Exporters: Government Initiatives 

The Ministry of Commerce & Industry has introduced several measures to empower MSME exporters and enhance their global competitiveness:

Export Promotion Mission (EPM): With a budget of ₹25,060 crore over six years, this initiative aims to address bottlenecks faced by exporters, especially MSMEs, and unlock India’s export potential.
Bharat Trade Net (BTN): A digital public infrastructure designed to simplify trade documentation, improve access to export finance, and integrate India’s trade ecosystem with global standards.
Grassroots Programs: Initiatives like Districts as Export Hubs (DEH) and E-Commerce Export Hubs (ECEHs) enable MSMEs, start-ups, and artisans to access international markets with reduced costs and simplified processes.
Infrastructure Development: The National Logistics Policy and PM Gati Shakti enhance multimodal connectivity and reduce logistics costs, benefiting MSME exporters.
Free Trade Agreements (FTAs): The Government is actively negotiating FTAs, including the recently signed Comprehensive Economic Partnership Agreement (CEPA) with the UK, to reduce trade barriers and open new markets for Indian exporters.

Employment and MSME Growth 

The Government has also launched initiatives to promote employment generation and support MSMEs:

Prime Minister’s Employment Generation Programme (PMEGP): A credit-linked subsidy programme to assist entrepreneurs in setting up micro units and creating employment opportunities.
Credit Guarantee Scheme for Micro and Small Enterprises: Provides credit guarantees for loans to MSEs, ensuring financial support for growth.
Employment Linked Incentive (ELI) Scheme: Approved to enhance employability and generate jobs across all sectors, including MSMEs.
Self-Reliant India (SRI) Fund: A ₹50,000 crore equity funding initiative to support MSMEs with growth potential and help them scale up.

The Road Ahead

The PLI programme has already demonstrated clear gains in sectors like pharmaceuticals, electronics, medical devices, and textiles, with ongoing monitoring and reviews ensuring its continued success. While India has made significant strides in export diversification and value addition, challenges such as global demand softness and price corrections in certain commodities highlight the need for sustained efforts in market access and innovation.

The Government’s commitment to empowering MSMEs, negotiating strategic trade agreements, and strengthening infrastructure will play a pivotal role in sustaining India’s growth momentum. With the PLI schemes and export-focused initiatives, India is well on its way to becoming a global manufacturing and export leader.

Conclusion

The Production Linked Incentive schemes are a testament to India’s resolve to transform its manufacturing and export landscape. By fostering investments, boosting production, and creating employment opportunities, the PLI programme is driving India’s journey towards self-reliance and global competitiveness. As the country continues to navigate global challenges, the resilience and diversification of its export sectors signal a promising future for India’s economy.

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Source: Ministry of Commerce & Industry

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