Budgetary Allocations
Only 8 out of 14 sectors under PLI schemes seen availing incentive in FY26
This story was originally published at 20:39 IST on 3 March 2025
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NEW DELHI – Only eight out of 14 sectors may be able to avail incentives under the government's Production Linked Incentive schemes in 2025-26 (Apr-Mar), according to the sector-wise budgetary allocations for PLI schemes released by the commerce ministry on Monday.
The Budget for FY26 has allocated INR 163.18 billion to PLI schemes for large-scale electronics, information technology hardware, automobiles, pharmaceuticals, textiles, white goods, speciality steel, and advanced chemistry cells. There have been no allocations in the FY26 Budget for PLI schemes for bulk drugs, medical devices, telecom products, food products, solar modules, and drones.
The Union Cabinet had approved PLI schemes for 14 manufacturing sectors in FY22 with an outlay of INR 1.97 trillion for five to seven years, but the scheme for several sectors, including automobiles and speciality steel, have been extended by a year or two due to their inability to avail incentives so far. Under PLI schemes, the government offers incentives to companies for incremental sales of products manufactured in India over the year when the scheme for the sector is announced.
The government's PLI scheme has been most successful in the IT hardware and large-scale electronics sector, with a disbursement of INR 77.38 billion till November since the scheme's inception in FY22, according to data given by the government in November. Lately, the government has been giving data on the disbursal of funds only in select sectors. It had last given the data on the disbursal of funds to each sector under the scheme in April 2023.
The following table details the sector-wise outlay under PLI schemes along with the FY26 Budget allocation (in INR billion):
| Sector | Outlay for 5 Years | FY26 Budget Allocation |
| Large Scale Electronics | 386.45 | 88.85 |
| Electronic/Technology Products | 73.50 | 1.15 |
| Bulk drugs | 69.40 | 0.00 |
| Medical Devices | 34.20 | 0.00 |
| Pharmaceutical Drugs | 150.00 | 24.45 |
| Telecom Products | 121.95 | 0.00 |
| Food Products | 109.00 | 0.00 |
| Drones | 1.20 | 0.00 |
| Automobile | 259.38 | 28.19 |
| Solar Module | 240.00 | 0.00 |
| Specialty Steel | 63.22 | 3.05 |
| White Goods | 62.38 | 4.45 |
| Advanced Chemistry Cells | 181.00 | 1.56 |
| Textiles | 106.83 | 11.48 |
End
Reported by Krity Ambey
Edited by Saji George Titus
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