Electronics, Pharma, Medical Devices Manufacturing Picks up Under PLI
The electronics sector has emerged as one of the most prominent success stories under the PLI framework
Chennai: Electronics, pharmaceuticals, and medical devices have seen a pickup in production under the Production-Linked Incentive (PLI) scheme. However, investments under the scheme are still down by 42.5 per cent, incremental sales are lower by 35 per cent, and employment generation has fallen short by 67.6 per cent.
Against the total PLI outlay, disbursements remain low at just 12 per cent. The initial expectations included investments of Rs 3.48 lakh crore, incremental production or sales of Rs 29 lakh crore, and the creation of around 39 lakh additional jobs. However, the scheme has so far facilitated actual investments of about Rs 2 lakh crore, supported incremental production or sales of over Rs 18.7 lakh crore, and generated more than 12.6 lakh direct and indirect jobs across these sectors by September 2025, according to CareEdge Ratings.
The electronics sector has emerged as one of the most prominent success stories under the PLI framework, supported by a strong policy foundation through the National Policy on Electronics (NPE) 2019. This ecosystem has helped attract both global OEMs and domestic manufacturers, integrating India more deeply into the global electronics value chain.
Overall electronics production increased by nearly 146 per cent, from Rs 2.13 lakh crore in FY21 to around Rs 5.45 lakh crore in FY25. The scheme has encouraged major smartphone manufacturers to shift a significant share of their global production to India, positioning the country as a key hub for mobile phone manufacturing. Since FY21, India has attracted more than $4 billion in foreign direct investment in electronics manufacturing, with nearly 70 per cent of the inflows directed to PLI beneficiaries. During this period, mobile phone exports have also recorded strong growth, rising sharply alongside the expansion of domestic manufacturing capacity.
The pharmaceuticals segment—particularly Key Starting Materials (KSMs), Active Pharmaceutical Ingredients (APIs), and critical bulk drugs—has emerged as one of the stronger performers under the PLI framework. The scheme has supported cumulative sales of around Rs 2.66 lakh crore, of which exports contributed Rs 1.70 lakh crore during the first three years of implementation.
In certain bulk drugs in FY22, India became a net exporter from being a net importer, underscoring rapid improvements in domestic value addition and supply-chain resilience. The scheme has also helped narrow the structural gap between domestic production capacity and national demand for several critical and high-dependency drug categories, reinforcing India’s position in the global pharmaceutical ecosystem. However, significant challenges remain, as India still imports nearly 70 per cent of its total API and bulk drug requirements.
The medical devices sector has also demonstrated progress in domestic capability building, with 21 projects commencing manufacturing of 54 uniquely identified medical devices. These include several high-end and previously import-dependent products such as linear accelerators (LINAC), MRI and CT scan systems, heart valves, stents, dialyzer machines, C-arm units, cath labs, mammography systems, and MRI coils.