Economic Survey 2025–26: PLI Scheme Drives Rs 18.7 Lakh Cr Production, Rs 2 Lakh Cr Investments

New Delhi, Jan 29 (KNN) The Production Linked Incentive (PLI) scheme played a key role in attracting global manufacturers to India, particularly in the smartphone sector, helping the country emerge as a major mobile phone manufacturing hub,  as per Economic Survey 2025–26.

Tabled by Finance Minister Nirmala Sitharaman in Parliament on Thursday, the survey highlights that the Production Linked Incentive (PLI) scheme, launched in 2020, now covers 14 sectors with a total outlay of Rs 1.97 lakh crore. 

As of September 2025, actual investments under the scheme have crossed Rs 2 lakh crore, while incremental production and sales have exceeded Rs 18.7 lakh crore. The Survey estimates employment generation of over 12.6 lakh jobs, including both direct and indirect roles.

The government has disbursed Rs 23,946 crore in incentives across 12 sectors so far, with 806 applications approved. Exports linked to the PLI framework have crossed Rs 8.2 lakh crore, driven mainly by electronics, pharmaceuticals, and telecom products.

Manufacturing and Innovation Push

To strengthen industrial growth, the Survey highlights the National Manufacturing Mission announced in the Union Budget 2025–26, which is expected to serve as a central policy framework for improving India’s global manufacturing competitiveness over the next decade.

The Survey also points to increased focus on research and innovation. A Research, Development and Innovation (RDI) Fund of Rs 1 lakh crore has been announced for six years, including Rs 20,000 crore for FY26. 

Improving Innovation and IP Performance

India’s innovation indicators have shown steady improvement. The country’s Global Innovation Index ranking rose from 66th in 2019 to 38th in 2025. India now leads among lower middle-income countries and ranks first in Central and Southern Asia. Bengaluru, Delhi, and Mumbai feature among the world’s top 50 innovation clusters.

In intellectual property filings, India ranked fourth globally in trademarks, sixth in patents, and seventh in industrial designs in 2024. Since FY20, patent filings have nearly doubled, while design registrations have increased more than two-fold.

Semiconductor Progress

The Economic Survey notes progress under the India Semiconductor Mission. As of August 2025, 10 semiconductor manufacturing and packaging projects have been approved across six states, involving investments of about Rs 1.6 lakh crore. These efforts are supported by a Rs 76,000 crore incentive package under the Semicon India programme.

(KNN Bureau)