PLI scheme attracts Rs 2.40 lakh crore investments across 14 sectors, enhancing manufacturing capacity: Report

The Production Linked Incentive (PLI) Scheme has attracted significant investment and supported the expansion of manufacturing capacity across 14 strategic sectors, according to a report by ASSOCHAM Global Research.

The report, “Ease of Doing Business in India’s Promising Manufacturing Sectors: Assessing the Production Linked Incentive (PLI) Scheme Across 14 Sectors”, highlights that, by March 2026, total investments under the scheme had reached Rs 2.40 lakh crore, with more than 836 approved applicants investing across the 14 sectors and incremental production and sales had crossed ₹20 lakh crore (December 2025).

The ASSOCHAM study finds that progress has varied across sectors. Electronics, pharmaceuticals and bulk drugs, telecom and food products have made strong progress, while ACC batteries and solar PV modules are experiencing steady improvements. IT hardware, textiles and speciality steel have recorded relatively moderate incentive disbursement. The report observes that these differences reflect variations in technology, capital requirements, project timelines and industry structure.


“The PLI Scheme has succeeded in generating substantial interest from industry and mobilising investment in strategically important sectors. The next challenge is to ensure that these investments move smoothly through the stages of project implementation, production, compliance, claim submission and incentive disbursement,” said Nirmal Kumar Minda, President, ASSOCHAM, in a statement.

“The effectiveness of PLI depends not only on the size of the incentives, but also on how easy it is for a compliant company to use the scheme. Clear rules, predictable processes, simpler compliance and better coordination have helped reduce the time and cost involved in moving from investment to production and finally to incentive realisation,” said Saurabh Sanyal, Secretary General, ASSOCHAM.

The sector-wise analysis identifies approval timelines, testing and certification, claim verification, skilled manpower, eligibility thresholds and supporting infrastructure as important Ease of Doing Business ingredients. The report notes that these need further facilitation to strengthen ease of doing business.

“PLI performance therefore needs to be assessed through a combination of investment, production, exports, domestic value addition and incentive disbursement rather than through any single indicator,” said S.P. Sharma, Chief Economist, ASSOCHAM.

The report recommends simpler, more predictable claim processes; standardised certification; smoother approvals; better testing infrastructure; sector-aligned eligibility requirements; and stronger coordination among relevant agencies.

It concludes that PLI and Ease of Doing Business need to be more synchronised. While PLI provides the incentive to invest and produce in India, an efficient and predictable business environment will help further convert these investments into productive capacity, higher domestic value addition, exports and stronger manufacturing capabilities.