India’s PLI Schemes Hit Only 28% Employment Target, NITI Aayog Says
India's 14 production-linked incentive schemes had generated 849,069 jobs by FY26 against a 3 million target, NITI Aayog said in a new assessment. Investment reached 76% of its goal. The think tank called for design changes to deepen the schemes' effect.
India's production-linked incentive (PLI) schemes have met only 28% of their employment target, even as investment has reached 76% of its goal, according to an assessment released Thursday by NITI Aayog, the government's policy think tank. The figures cover the period through fiscal 2025-26 (FY26). It is the first review of its kind for the flagship manufacturing programs.
PLI schemes pay companies cash incentives tied to what they produce or sell. The 14 schemes were launched between 2020 and 2021, with tenures of three to 10 years.
Jobs lag investment
The schemes had generated 849,069 jobs by FY26, against a target of 3 million. They mobilized around ₹2.4 trillion against an investment target of ₹3.15 trillion.
Production reached around ₹22.66 trillion, or 64% of the ₹35.38 trillion target.
The 14 schemes have completed 58% of their combined implementation period, with 578 months elapsed out of 996. That leaves 42% still to run.
"The portfolio therefore represents a mix of schemes at different stages of maturity," the think tank said.
Uneven year by year
Annual job creation swung widely. It stood at 86% of the target up to 2022-23, around 85% in 2023-24 and 156% in 2024-25. It then fell to 31% of the annual target in 2025-26.
NITI Aayog said the gap between jobs and investment must be read against the gestation period of factory projects. "Investment generally takes place before facilities become fully operational; production then ramps up as capacity is commissioned and utilisation increases," the report said.
Which sectors are on track
The report said schemes in four sectors are on track: large-scale electronics manufacturing, pharmaceutical drugs, telecommunications and networking products, and food products.
It found weak or partial results in three areas. These were the bulk drugs scheme on exports, the medical devices scheme on employment, and the Electronics/Technology Products (IT Hardware 2.0) scheme on investments.
Officials' view
Ishtiyaque Ahmed, programme director at the think tank, defended the program's record. "Overall, the scheme has been successful. We never expected that everyone would perform across all indicators, but 70 per cent of players and indicators are on track," he said.
NITI Aayog Chief Executive Officer Anurag Jain said schemes needing changes would be reviewed with the relevant line ministries.
The report urged a shift in focus. "The way ahead lies not merely in continuing the scheme but in refining its design so that it can deliver deeper and more sustained industrial transformation," it said.
