PLI Impact Assessment: Nearly 70% of Targeted Segments On Track Across 14 Sectors

The news

NITI Aayog on 12 November 2026 released a report titled “Impact Assessment of PLI Schemes”, prepared with the Indian Institute of Management, Ahmedabad as the knowledge partner. The assessment covers all 14 sectors notified under the Production Linked Incentive scheme and finds that nearly 70% of targeted segments are on track. The report is meant to serve as a reference for policymakers, implementing ministries, industry stakeholders and researchers.

The assessment examined investment, additional production, exports and employment using firm-level data shared by implementing ministries, supplemented by industry inputs. Sectoral outcomes were classified into four groups: On-Track, Partial Impact, Insignificant Evidence of Impact, and Data unavailable. Pharmaceuticals, mobile manufacturing under Large Scale Electronics Manufacturing, food processing, telecom, white goods, automobiles and drones showed notable progress, with the drones sector emerging as an early implementation success. Manufacturing capacity in high-efficiency solar PV modules has also expanded significantly. Sectors involving advanced technologies such as ACC batteries, specialty steel and technical textiles are witnessing gradual capacity creation. The report notes that investment and production have exceeded targets, though long-term effectiveness will depend on deepening domestic value addition and strengthening supply chains.

When was the PLI scheme launched and expanded?

The Production Linked Incentive scheme was introduced by the Government of India in 2020 to boost domestic manufacturing and exports. It began with three sectors and was later extended to cover fourteen sectors. The scheme is implemented by various central ministries and departments. NITI Aayog is the government body that released the impact assessment report in collaboration with IIM Ahmedabad.

How were the sectors assessed?

The assessment used firm-level data collected by implementing ministries, supplemented by industry-level inputs from authenticated sources. Outcomes were categorised into four groups: On-Track, Partial Impact, Insignificant Evidence of Impact, and Data unavailable. This structured classification gives a comparative overview of progress across sectors.

What has the scheme achieved and what remains?

The report finds that nearly 70% of targeted segments are on track and that investment and production have exceeded targets. Sectors with strong industry participation—pharmaceuticals, mobile manufacturing, food processing, telecom, white goods, automobiles and drones—have shown encouraging outcomes. However, the report highlights the need for deeper MSME participation, harmonised data systems and sustained ecosystem development. Long-term effectiveness, it says, depends on deepening domestic value addition and strengthening supply chains.