PM Modi Led Manufacturing Initiatives: Make in India, PLI & More
Production Linked Incentive (PLI) Scheme
India's services sector has long been a significant contributor to the nation's economy, accounting for more than 50percent of the GDP. In order to foster a more balanced and resilient economic growth, the government shifted its attention towards the manufacturing sector, recognizing its pivotal role in creating jobs, boosting exports, and promoting self-sufficiency.
The launch of the Production Linked Incentive (PLI) Scheme in 2020 marked a strategic move to enhance domestic manufacturing by providing targeted incentives based on performance metrics across critical sectors.
The PLI Scheme was initially introduced in April 2020, focusing on Mobile Manufacturing, Specified Electronic Components, Critical Key Starting Materials/Drug Intermediaries, Active Pharmaceutical Ingredients, and Manufacturing of Medical Devices.
Building on its early successes, the scheme was progressively expanded to encompass 13 key sectors of the economy, including pharmaceuticals, automobiles and auto components, Textile Products, white goods, and specialty steel, among others.
Over time, the PLI Scheme garnered significant interest from both domestic and international investors, resulting in the approval of multiple projects in sectors like electronics, bulk drugs, medical devices, and textiles.
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For instance, in February 2021, the Union Cabinet sanctioned a Rs.15,000 crore PLI scheme for the pharmaceuticals sector, while a Rs.25,938 crore PLI scheme for the automobile and auto component industry, along with a PLI scheme for Drones and Drone Components totaling Rs.120 crore for 3 years, received approval in September 2021.
The investments committed under the PLI scheme had reached Rs.1.61 lakh crore, with further growth seen in 2025 as realized investments surged to approximately Rs.1.76 lakh crore and 806 approved applications transitioned from approval to active implementation.
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By concentrating on sectors such as electronics, textiles, pharmaceuticals, and automobiles, the initiative aligns financial rewards with tangible outcomes such as enhanced production and increased sales. This results-driven approach not only attracts investments from domestic and international stakeholders but also incentivizes businesses to adopt advanced technologies and achieve economies of scale.
Some of the top Performing Sectors under PLI Scheme include:
Electronics and Mobile Device Manufacturing
The electronics industry has emerged as a notable success story under the Production Linked Incentive (PLI) strategy; supported by robust policy measures such as the National Policy on Electronics (NPE) 2019.The PLI program has attracted both international Original Equipment Manufacturers (OEMs) and domestic industry leaders, positioning India within the global electronics value chain. The impact of these efforts has been significant, with production increasing by 146percent, rising from Rs.2.13 lakh crore in FY 2020-21 to Rs.5.25 lakh crore in FY 2024-25. The PLI Scheme has incentivized major smartphone companies to relocate their manufacturing operations to India, transforming the nation into a key hub for mobile phone production.
Automobile & Auto Components
India has successfully secured investments amounting to Rs.67,690 crore under the Production Linked Incentive (PLI) program. A substantial portion of this amount, Rs.14,043 crore, has already been invested, leading to the creation of more than 28,884 employment opportunities. The primary objective of these initiatives is to position India as a prominent global hub for electric vehicles (EVs) and clean technology. This strategic endeavor is in alignment with the government's Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative, which promotes sustainable modes of transportation.
The PLI scheme entails offering financial benefits to 19 diverse categories of Advanced Automotive Technology (AAT) vehicles and 103 categories of AAT components. The overarching goal is to boost the local production of innovative automotive technology products and to attract substantial investments into the automotive manufacturing supply chain.
Food Processing
With a total of 171 applications approved by October 2024, the food processing sector has received investments surpassing Rs.8,910 crore, with incentives amounting to Rs.1,084 crore already disbursed. The PLI scheme aligns with other programs such as the PM-Formalization of Micro Food Processing Enterprises (PM-FME) and the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), all working towards the goals of modernizing processing facilities, improving the branding of Indian food products, and increasing the export value through added value.
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Pharmaceutical Industry
Previously reliant on imports for crucial raw materials, India's pharmaceutical sector is now experiencing resurgence. Through targeted support from the Production Linked Incentive (PLI) scheme, the nation has shifted from being a net importer (Rs.1,930 crore deficit in FY 2021-22) to a net exporter of bulk drugs (Rs.2,280 crore surplus in FY 2024-25). Within the first three years of the PLI implementation, pharmaceutical sales surpassed Rs. 2.66 lakh crore, with exports reaching Rs. 1.70 lakh crore.
Solar Photovoltaic Modules
The PLI initiative for High-Efficiency Solar PV Modules, encompassing Tranche I & II, aims to establish a combined manufacturing capacity of nearly 48 GW. This endeavor is anticipated to lessen reliance on imports, fortify domestic supply chains, and enhance India's energy security in alignment with the overarching objectives of Aatmanirbhar Bharat and the National Solar Mission. Investments totaling Rs.48, 120 crore have been pledged under the PLI scheme for high-efficiency solar PV modules, resulting in the creation of approximately 38,500 direct jobs.
Semiconductor Industry
In a tech-driven world, India is forging its own path in the semiconductor sector characterized by bold strategic foresight. With six approved semiconductor projects at various stages of implementation, India has recently gained Union Cabinet approval for four additional manufacturing facilities in Odisha, Punjab, and Andhra Pradesh. These projects, supported by the India Semiconductor Mission (ISM) with an investment of Rs.4,600 crore, are projected to generate direct employment opportunities for 2,034 skilled professionals and catalyze growth within the broader electronics manufacturing ecosystem, leading to substantial indirect job creation. With a vision to establish a self-sufficient semiconductor ecosystem by 2030, the government has introduced tailored incentives under the India Semiconductor Mission to complement the broader PLI framework.