Electronics, pharma sectors corner 70% of Production-Linked Incentive (PLI) disbursements in FY25
- IBEF
- July 14, 2025
Large-scale electronics and pharmaceutical manufacturing dominated the Production-Linked Incentive (PLI) scheme disbursements in FY25, accounting for nearly 70% of the total fiscal outlay. According to government data, of the Rs. 10,114 crore (US$ 1.18 billion) disbursed under the PLI scheme across 14 sectors, electronics manufacturers received Rs. 5,732 crore (US$ 666.3 million), while pharmaceutical firms secured Rs. 2,328 crore (US$ 270.6 million). Introduced in 2021 with a total allocation of Rs. 1,97,000 crore (US$ 22.90 billion), the PLI scheme is a cornerstone of India’s strategy to promote domestic manufacturing and boost value-added exports. In comparison, disbursals in FY24 stood at Rs. 9,721 crore (US$ 1.13 billion). Other sectors receiving incentives in FY25 include telecom Rs. 840 crore (US$ 97.6 million), food processing Rs. 448 crore (US$ 52.1 million), and automobiles Rs. 322 crore (US$ 38.6 million), with smaller allocations for medical devices, white goods, bulk drugs, specialty steel, textiles, and drones.
The impact of PLI on India's electronics sector is especially significant, with electronic goods emerging among the top three export categories. The sector recorded a 32.46% export growth in FY25, with shipments rising from Rs. 2,50,519 crore (US$ 29.12 billion) in FY24 to Rs. 3,31,904 crore (US$ 38.58 billion). This marks a jump from Rs. 1,35,067 crore (US$ 15.7 billion) in FY22. Notably, computer hardware and peripherals saw 101% growth, reaching Rs. 12,044 crore (US$ 1.4 billion). Key export destinations include the United Arab Emirates (UAE), the United States (US), the Netherlands, the United Kingdom (UK), and Italy. Meanwhile, India’s pharmaceutical exports touched Rs. 2,62,392 crore (US$ 30.5 billion), up 10%, with Indian drugs now reaching over 200 countries, affirming the PLI scheme’s role in bolstering global competitiveness.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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