Eco Survey 2026: PLI scheme drives double-digit export growth; telecom leads import substitution

The Production-Linked Incentive (PLI) scheme, introduced in April 2020 to boost domestic manufacturing and exports, has delivered strong trade outcomes across several targeted sectors, according to the Economic Survey 2026 tabled in Parliament on Wednesday.

Initially covering a limited set of sectors, such as mobile manufacturing, select electronic components, active pharmaceutical ingredients and medical devices, the scheme has since expanded to 14 sectors, indicating a broader strategy to strengthen India’s manufacturing base. Between FY21 and FY25, exports from PLI-covered sectors recorded an average annual growth rate (AAGR) of 10.6%, while imports grew at an AAGR of 12.6%, the survey said.

Export performance varied widely across sectors. High export growth, exceeding 20% AAGR between FY21 and FY25, was recorded in IT hardware (77.2%), advanced chemistry cell (ACC) batteries (45%), electronics (38.8%), solar PV (23.9%) and speciality steel (22.5%). Import growth in these sectors was relatively moderate for electronics, IT hardware and speciality steel, but significantly higher for solar PV and ACC batteries.


These trends point to a scaling up of production capacity and deeper integration into global value chains, with domestic manufacturing increasingly leveraging imported intermediate goods to support higher-value exports, the survey stated.

Several other PLI sectors posted moderate export growth, including automobiles (14.1%), textiles (7.8%), food products (6.7%), pharmaceuticals (6%), medical devices (6.5%), white goods (4.8%), bulk drugs/APIs (3.5%) and drones (3.9%). Most of these sectors also saw steady import growth, reflecting expanding domestic activity alongside continued dependence on imported inputs and technology.

The telecom sector stood out, with exports rising at an AAGR of 1.5% while imports declined sharply by 18.5%, indicating early success in import substitution and improved global competitiveness, the survey said.

Overall, the trade performance highlights the PLI scheme’s role in supporting export growth, capacity expansion and gradual strengthening of domestic manufacturing ecosystems.