A fresh report from CareEdge Ratings, released in mid-January 2026, highlights that India’s Production Linked Incentive (PLI) scheme is finally moving from the “investment phase” to a high-velocity “disbursement phase.”
While total payouts have reached only 12% of the ₹1.97 lakh crore budget, the momentum in electronics and pharmaceuticals has successfully transitioned India from a net importer to a global export contender.
The Standout: Large-Scale Electronics
Electronics manufacturing, primarily driven by the mobile phone segment, remains the star of the PLI portfolio.
- Production Surge: Output skyrocketed 146%, rising from ₹2.13 lakh crore in FY21 to ₹5.45 lakh crore in FY25.
- FDI Magnet: The sector attracted $4 billion in FDI, with 70% of those funds flowing specifically to PLI-approved companies.
- Export Milestone: Mobile phone exports reached ₹2 lakh crore in FY25, a nearly eightfold increase from FY21 levels.
- Top Beneficiaries: Key players leading the charge include Apple’s ecosystem (Foxconn, Tata Electronics), Samsung Display, and domestic champion Dixon Technologies.
PLI Disbursement: The “Hockey Stick” Growth
After a sluggish start, incentive payouts are accelerating as companies hit their incremental production targets.
| Financial Year | Disbursement (₹ Crore) | Status |
| FY23 | 2,968 | Initial Setup |
| FY24 | 6,753 | Early Production |
| FY25 | 10,112 | Highest Annual Total |
| H1 FY26 | 4,113 | Mid-year progress (as of Sept 2025) |
| FY26 (E) | 19,742 | Projected Year-End Total |
Sectoral Budgetary Outlays (The Top 5)
The government has strategically prioritized capital-intensive and high-tech sectors to maximize the “multiplier effect” on the economy.
- Large-Scale Electronics: ₹38,645 crore
- Automobiles & Components: ₹25,938 crore
- Solar PV Modules: ₹24,000 crore
- ACC Batteries: ₹18,100 crore
- IT Hardware: ₹17,000 crore
The “Gestation” Challenges
While electronics and pharma are thriving, other sectors are facing longer lead times:
- ACC Batteries: Only 1 GWh of capacity has been commissioned out of the 40 GWh awarded, largely due to technical complexities in chemistry and supply chain stabilization.
- Solar PV: Large-scale payouts are only expected to kick in later in FY27 as major manufacturing facilities (like Reliance’s Jamnagar complex) become fully operational.
- Textiles: Though a high-priority sector, it is still in the “scaling” phase, with significant infrastructure still under construction.
