India's PLI Scheme Results Tracker: Which Sectors Are Actually Paying Out in 2026

The Complete PLI Scheme Tracker: 14 Sectors, One Dashboard

India's Production Linked Incentive (PLI) scheme is the largest industrial policy intervention in the country's post-liberalization history. With a total outlay of Rs 1.97 lakh crore (US$26 billion) across 14 sectors, the scheme aims to make India a global manufacturing hub by offering cash incentives linked to incremental production.

But tracking actual results across 14 different schemes, each administered by a different ministry, with different timelines, thresholds, and reporting cycles, is genuinely difficult. This tracker compiles the latest verified data from government disclosures, parliamentary filings, and official press releases to give foreign investors and corporate strategists a single source of truth.

All data below is current as of December 2025, unless otherwise noted. We will update this tracker quarterly as new disbursement data becomes available.

Aggregate Performance: The Headline Numbers

The disbursement-to-outlay ratio of approximately 14.6% indicates the schemes are still in their early-to-mid execution phase. For foreign companies evaluating foreign direct investment in India's manufacturing sector, these aggregate numbers provide context — but the real story is in the sector-by-sector details below.

Sector 1: Large-Scale Electronics Manufacturing

This is the PLI scheme's undisputed success story. India now meets over 99% of domestic mobile phone demand through local production, and mobile exports have grown eight-fold since FY21. The scheme attracted Apple's entire contract manufacturing chain to India — a strategic win that goes beyond the incentive amounts. Companies entering this sector via the automatic route for FDI enjoy both the PLI incentive and a deeply developed supplier ecosystem.

Sector 2: IT Hardware

The IT hardware PLI is relatively new (relaunched in 2023 with improved terms) and is gaining traction. With laptop import restrictions tightened, companies now have both the carrot (PLI incentives) and the stick (import licensing requirements) pushing them toward domestic production.

Sector 3: Pharmaceuticals (Formulations)

India's pharma PLI is the second-largest disbursement recipient and has consistently delivered results. The sector benefits from India's existing position as the "pharmacy of the world" — the PLI scheme amplified an already strong base rather than building one from scratch. Foreign pharmaceutical companies can explore investment through FDI advisory services to navigate sectoral regulations.

Sector 4: Bulk Drugs (KSMs/APIs/Drug Intermediates)

The bulk drugs PLI represents a national security-driven initiative to reduce dependence on Chinese API imports. The shift from net importer to net exporter of bulk drugs is a structural achievement. For foreign companies in the FDI space, bulk drug manufacturing offers green-channel approvals given its strategic importance.

Sector 5: Medical Devices

The medical devices PLI is still in its early stages but targets high-value segments where India currently imports heavily. This sector is open to 100% FDI under the automatic route.

Sector 6: Automobiles & Auto Components

Despite having the second-largest outlay, the auto PLI has disbursed relatively little because it targets next-generation technologies rather than traditional manufacturing. The scheme requires companies to meet high domestic value addition thresholds for advanced components — a tougher bar than incremental sales. Foreign auto component manufacturers should assess whether their product mix aligns with the scheme's technology-specific criteria before planning a foreign subsidiary setup.

Sector 7: Telecom & Networking Products

The telecom PLI is a strong performer relative to its size, driven by India's 5G infrastructure buildout and the broader push for trusted telecom equipment supply chains. The scheme window closes by FY26, making early entry critical for foreign players looking at India's export ecosystem.

Sector 8: Food Processing

Food processing is a mid-tier performer with solid employment numbers. The scheme specifically targets innovative and organic products, millet-based foods, and segments with strong export potential. Foreign food companies can access 100% FDI under the automatic route for food processing, making this a relatively straightforward entry point.

Sector 9: White Goods (ACs & LED Lights)

The white goods PLI focuses on component manufacturing rather than finished products, aiming to shift India from assembly to full-stack manufacturing. Disbursement data for this sector is limited, suggesting early-stage execution.

Sector 10: Specialty Steel

Specialty steel has attracted large investment commitments but actual disbursements are minimal due to long capital expenditure gestation periods. The launch of Round 2 indicates the government is doubling down on this sector despite slow initial results.

Sector 11: Solar PV Modules

The solar PLI is building India's renewable energy manufacturing base from the ground up. While module capacity is strong at 120 GW, upstream capacity in polysilicon and wafer production remains thin. Foreign solar manufacturers should note that the scheme requires progressive domestic value addition — starting with modules and moving to cells, wafers, and polysilicon.

Sector 12: Advanced Chemistry Cell (ACC) Battery

The ACC battery PLI is the most underperforming scheme by any measure. The 50 GWh target looks increasingly unrealistic given that only one company has started production. However, several large players (Reliance, Ola, Amara Raja) have committed to future capacity, and the long-term tailwind from India's EV transition may eventually justify the slow start.

Sector 13: Textile Products

The textile PLI has seen lower-than-expected uptake, primarily because it targets man-made fibers and technical textiles rather than India's traditional strength in cotton textiles. The government is considering recalibrating the scheme parameters to improve participation.

Sector 14: Drones & Drone Components

The drone PLI is the smallest scheme by outlay but signals the government's interest in emerging technology manufacturing. The scheme is designed primarily for MSMEs and startups rather than large foreign manufacturers.

FY25 vs FY24 Disbursement Comparison

The 4% year-on-year growth in disbursements indicates steady but not accelerating execution. Most of the growth is concentrated in electronics and pharma, with newer schemes yet to contribute meaningfully.

Budget Allocation Trends: Where the Money Is Going

The FY26 budget allocation of Rs 19,500 crore for PLI schemes represents a 76% increase over the previous year's outlay, signaling the government's continued commitment to manufacturing-led growth. But allocations are not disbursements — understanding the gap between the two reveals which sectors the government is backing for future growth versus which are already delivering returns.

The divergence between outlay and disbursement rates tells a clear story: large budgets do not guarantee large payouts. The auto sector, with the second-largest outlay, has one of the lowest disbursement rates because it targets nascent technologies. Conversely, electronics has the highest disbursement rate because it targets proven manufacturing categories with established global demand.

MSME Participation: A Growing but Uneven Story

One underreported dimension of the PLI scheme is MSME participation. Across all 14 sectors, 176 MSMEs are among the PLI beneficiaries, concentrated in bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles, and drones. However, the large-scale electronics PLI, which accounts for the majority of disbursements, is dominated by multinational corporations and large Indian conglomerates — not MSMEs.

For foreign companies looking to partner with Indian manufacturers or build local supply chains, the MSME distribution under PLI schemes provides a useful map of where domestic capability exists. Sectors with strong MSME participation (food processing, telecom, medical devices) tend to have a more diverse vendor ecosystem, which can reduce supply chain concentration risk.

How to Evaluate PLI Eligibility for Your Investment

If you are a foreign company considering manufacturing in India, here is a practical framework for evaluating PLI eligibility:

1. Verify sector eligibility: Confirm your products fall within one of the 14 PLI sectors. Sub-categories and product definitions are specific — a general electronics company may not qualify if its specific products are not covered.
2. Check scheme timeline: Several PLI schemes are in their final 1-2 years. New applicants may not have enough time to meet incremental production thresholds and claim meaningful incentives.
3. Assess base-year dynamics: If you already manufacture in India, your PLI benefit is calculated on incremental production over a base year. Companies without an Indian manufacturing presence start from a zero base — which can be an advantage.
4. Align FEMA compliance: PLI eligibility does not exempt foreign companies from FDI regulations. You still need to comply with FEMA-RBI compliance requirements, file FC-GPR for share allotment, and follow the applicable FDI route.
5. Budget for compliance: PLI claims require documented proof of incremental production, third-party audits, and regulatory filings. Companies report compliance costs of 0.5-1% of the incentive value.

For a detailed entity structure analysis to access PLI benefits, consider the branch office vs subsidiary comparison — a subsidiary is typically required for PLI participation since the scheme requires domestic manufacturing, not representative offices.

What the Data Tells Foreign Investors

The PLI scheme data reveals several patterns that matter for India entry strategy decisions:

• Follow the disbursement trail: Sectors that are actually paying out (electronics, pharma, telecom) have mature ecosystems, predictable incentive calculations, and proven government execution machinery. Newer sectors have larger outlays but unproven execution.
• Watch for scheme extensions: The government has shown willingness to extend or recalibrate underperforming schemes (textile, food processing) rather than abandon them. This provides optionality for patient investors.
• The real value is ecosystem access: PLI incentives of 4-6% are meaningful but rarely investment-decisive on their own. The real value is the ecosystem development, supply chain depth, and infrastructure investment that PLI-active sectors attract. Enter those sectors for the ecosystem, not just the incentive.
• Tax planning matters: PLI incentives are taxable as business income under the corporate tax framework. At a 25.17% effective tax rate for new manufacturing companies, the post-tax incentive is roughly 3-4.5% rather than 4-6%. Factor this into your tax planning.

Sector Entry Difficulty: A Foreign Investor's Quick Reference

Not all PLI sectors are equally accessible for foreign companies. Beyond the FDI route and FEMA compliance, some sectors have additional licensing, regulatory, or domestic-sourcing requirements that affect ease of entry:

Key Takeaways

• 836 applications approved, Rs 28,748 crore disbursed across 14 sectors — but 70% goes to electronics and pharma alone.
• Electronics is the standout: 146% production growth, 77% import reduction, 8x export growth. This is where the PLI model works best.
• Battery PLI is the laggard: 2.8% of capacity target achieved after 4 years. Solar PV is better but still behind schedule.
• FY26 budget up 76% to Rs 19,500 crore, indicating continued government commitment despite uneven results.
• For foreign investors: PLI is a meaningful incentive layer, but sector selection and FEMA compliance matter more than the headline outlay numbers.