India’s PLI Schemes Achieve 76% Investment Target, but Job Creation Stands at Just 28%

India's ambitious plan to strengthen domestic manufacturing has made significant progress in attracting investment, but creating jobs remains a major challenge. The country's Production Linked Incentive (PLI) schemes have achieved 76% of their investment target and 64% of their production target, while employment generation stands at just 28% of the full-tenure goal, according to a new assessment by NITI Aayog.

The findings were published in the report Impact Assessment of PLI Schemes, released on November 12, 2026. Prepared in collaboration with the Indian Institute of Management Ahmedabad (IIM-A), the assessment examines the performance of the government's manufacturing incentive programme across 14 sectors.

According to the report, the schemes attracted investments of ₹2,40,138 crore and generated production and sales worth ₹22,66,412 crore by March 31, 2026. They also recorded employment for 8,49,069 people against a full-tenure target of approximately 30.19 lakh. The figures highlight a gap between India's progress in expanding manufacturing capacity and its ability to translate that growth into employment opportunities.

Investment and Production Move Ahead, Jobs Lag Behind

The government introduced PLI schemes to encourage companies to manufacture goods in India, expand production, attract domestic and foreign investment and strengthen the country's position in global markets.

The 14 schemes have a combined financial outlay of ₹1.91 lakh crore. Against a full-tenure investment target of ₹3.15 lakh crore, companies had achieved approximately ₹2.40 lakh crore by March 2026. Production and sales reached 64% of the target of ₹35.37 lakh crore. However, employment reached only 28% of the target of 30.19 lakh jobs.

NITI Aayog has cautioned against treating the employment figure as a final verdict on the programme. The schemes have completed around 58% of their combined implementation period, leaving 42% still to run.

Manufacturing projects also take time to move from investment to full-scale operations. Companies generally purchase machinery and establish facilities before increasing production and expanding their workforce. However, the employment gap remains an important measure of how effectively manufacturing growth is reaching workers.

Electronics and Pharmaceuticals Among Stronger Performers

The assessment found that results vary considerably across sectors. Large-scale electronics manufacturing, pharmaceutical drugs, telecommunications and networking products, and food products were identified as four sectors broadly on track across investment, production, exports and employment.

Mobile manufacturing has emerged as a major area of progress under the large-scale electronics manufacturing scheme. The programme has helped expand production, attract companies and strengthen India's role in electronics manufacturing.

The pharmaceutical sector has also recorded encouraging results, particularly among larger companies with stronger production capabilities and access to international markets.

Food processing has benefited from increased manufacturing activity, while the telecom sector has made progress in expanding domestic production. However, the report also points to the need for stronger domestic supply chains and greater production of high-value components within India. NITI Aayog's broader assessment says nearly 70% of targeted segments are broadly on track, although performance differs across individual sectors and indicators.

Some Manufacturing Sectors Continue to Face Challenges

Not every sector has progressed at the same pace. Advanced Chemistry Cell (ACC) battery manufacturing, specialty steel, technical textiles and IT hardware continue to face challenges linked to investment, technology, production capacity and market development.

The ACC battery sector, for instance, is still developing its manufacturing ecosystem. Domestic manufacturers face difficulties involving technology, imported machinery and the availability of key raw materials.

In telecommunications, the report highlights continued dependence on imported high-value components. This means that increasing the number of products assembled in India does not necessarily translate into complete domestic manufacturing.

The automobile and auto components sector has attracted substantial investment, but employment, exports and domestic value addition need further attention. These differences suggest that a uniform policy approach may not work equally well for industries with different investment requirements, technologies and production timelines.

The assessment also shows that the government had disbursed ₹35,354 crore in incentives by March 2026, representing 18.51% of the total approved outlay of ₹1.91 lakh crore.

However, this does not mean that the remaining amount has been spent or lost. PLI payments are linked to companies meeting specified investment, production and other eligibility conditions. Incentives are released after firms satisfy these requirements rather than being paid upfront. The report recorded incentive disbursements of ₹15,519 crore in FY 2025–26, slightly above the planned ₹15,472 crore for that year.

NITI Aayog Calls for Changes to Strengthen the Schemes

The assessment recommends a more sector-specific approach to improve the programme's long-term impact. It calls for stronger participation from micro, small and medium enterprises (MSMEs), better coordination between ministries and more consistent reporting of investment, production, exports and employment data.

It also highlights the need to move beyond incentives that encourage companies to increase production. Stronger domestic demand, government procurement and better access to export markets could help ensure that newly established manufacturing facilities remain competitive.

The report's findings have also prompted discussions about reviewing schemes that are not meeting their intended outcomes. NITI Aayog officials have indicated that changes may be considered in coordination with the ministries responsible for individual sectors.