NITI Aayog Reviews the PLI Scheme: 70% of Target Segments on Track, Value Addition Still Weak
NITI Aayog released a sector-wise assessment of the Production Linked Incentive (PLI) Scheme. It found that nearly 70% of the targeted segments are broadly on track.
Up to March 2026, the scheme had attracted investment of ₹2,40,138 crore, led to production worth ₹22,66,412 crore, and created jobs for 8,49,069 people.
Incentives paid so far are ₹35,354 crore, which is only 18.51% of the total outlay of ₹1,91,049 crore across 14 sectors.
Large-scale electronics (mainly mobile phones), telecom and pharmaceutical drugs showed the strongest results. Drones also did well, with 77.5% of their small ₹120 crore outlay already paid out.
In autos, telecom and speciality steel, investment and production look good, but the report says employment, exports and domestic value addition (how much of the product's value is really created in India) need strengthening. Battery (ACC) results are still at an early stage.
Separately, real manufacturing Gross Value Added (GVA) rose from ₹34.82 lakh crore in 2022-23 to ₹47.47 lakh crore in 2025-26.
Production Linked Incentive (PLI) Scheme
The PLI Scheme is a government plan that pays companies a cash reward for producing more in India. The reward is a small percentage (usually about 4% to 6%) of the extra sales a company makes from goods made in its Indian factories, compared with a base year. So the more a company produces and sells beyond that base, the more it earns. The aim is to build large factories, cut imports, raise exports and create jobs.
NITI Aayog's review is the first broad sector-by-sector check of the PLI. It shows the scheme has worked best in electronics and pharma, while low disbursal and weak value addition in some sectors show where it has fallen short.
Domestic Value Addition (DVA): How Much of a Product Is Really Made in India
Domestic Value Addition, or DVA, tells us how much of a product's value is actually created inside a country. Suppose a phone is sold by the factory for ₹10,000. If the factory imported ₹8,000 worth of chips, screens and other parts, then only ₹2,000 of value was added in India. The DVA is 20%. A product can carry a "Made in India" label even when most of its value comes from imported parts. DVA shows the real picture behind that label.
NITI Aayog's review found that in autos, telecom and speciality steel, investment and production are growing, but domestic value addition still needs strengthening. In other words, more is being made in India, but too much of the value inside these products is still imported.
- PLI targeted segments broadly on track: nearly 70% (NITI Aayog, November 2026)
- Investment (till March 2026): ₹2,40,138 crore; production: ₹22,66,412 crore; jobs: 8,49,069
- Incentives paid: ₹35,354 crore (18.51% of ₹1,91,049 crore outlay); 14 sectors
- Best performers: large-scale electronics (outlay ₹34,193 crore), telecom, pharma drugs (₹15,000 crore)
- Drones PLI: outlay ₹120 crore; 77.5% disbursed
- Auto PLI: outlay ₹25,938 crore; investment ₹44,326 crore by March 2026
- ECMS outlay: ₹40,000 crore
- Real manufacturing GVA: ₹34.82 lakh crore (2022-23) to ₹47.47 lakh crore (2025-26), CAGR 10.88%