New Delhi, November 12: Nearly 70% of the segments targeted under the Production Linked Incentive (PLI) schemes are on track, according to a NITI Aayog report released on Thursday.
The report, titled Impact Assessment of PLI Schemes, was prepared with the Indian Institute of Management, Ahmedabad as knowledge partner. It covers all 14 sectors notified under the PLI scheme.
How the schemes were assessed
The study measures four outcomes: investment, additional production, exports and employment. It draws mainly on firm-level data from the ministries that run the schemes, supplemented by industry-level inputs.
Sector outcomes are placed in four groups: On-Track, Partial Impact, Insignificant Evidence of Impact, and Data unavailable.
Sectors showing progress
According to the report, pharmaceuticals, mobile phone manufacturing under the large-scale electronics manufacturing (LSEM) scheme, food processing, telecom, white goods, automobiles and drones have shown notable progress in investment, production and capacity creation. It describes drones as an early implementation success.
Capacity to manufacture high-efficiency solar PV modules has expanded significantly, the report says. Advanced chemistry cell (ACC) batteries, specialty steel and technical textiles are showing more gradual capacity creation and ecosystem development, which the report expects to be important for long-term growth.
Value addition key to lasting gains
The report concludes that the scheme has stimulated investment and production beyond targets. It adds, however, that its long-term effectiveness will depend on deeper domestic value addition and stronger supply chains.
It recommends a continued focus on wider participation by micro, small and medium enterprises (MSMEs), harmonised data systems across ministries and sustained ecosystem development.
What the PLI scheme does
The PLI scheme gives incentives to high-performing firms and is intended to make Indian manufacturing more competitive and better linked to global value chains, according to the government. The schemes are implemented by several ministries.
NITI Aayog said the report is meant to serve as a reference for policymakers, implementing ministries, industry and researchers. For manufacturers and investors, the sector-by-sector grading offers an official view of where the incentives have worked and where progress has been slower.