In the last eleven years, the Narendra Modi government has placed manufacturing at the heart of India’s economic transformation. With a clear intent to transform India into a global manufacturing hub, the government has launched a series of structural reforms aimed at attracting investment, building domestic capacity, and boosting exports. The Production-Linked Incentive (PLI) schemes, introduced in 2020 as part of the broader “Aatmanirbhar Bharat” mission, reflect this vision in action.

With a total outlay of Rs. 1.97 lakh crores over five years, the PLI schemes have emerged as a cornerstone of India’s 21st century industrial policy.

Initially launched for three sectors, which include mobile and electronic components, pharmaceutical APIs (active pharmaceutical ingredients), and medical devices, the early success led to its expansion across 14 critical sectors. These range from automobiles and textiles to advanced chemistry cell batteries and specialty steel.

The goal was clear: reward production, not inputs; catalyse scale, not just subsidy.

The results are already being seen across sectors. The PLI scheme for electronics has helped India achieve a manufacturing breakthrough. Once heavily import-dependent, India’s electronics industry is now gaining global stature. Mobile phone production has not only grown exponentially, but exports have also reached new highs.

According to the India Cellular and Electronics Association (ICEA), India exported mobile phones worth Rs. 1.2 lakh crores in FY24, a sharp rise from just Rs. 1,566 crores in FY14. This places India among the top mobile manufacturing nations in the world, bolstered by increasing domestic value addition and expanding component ecosystems.

This leap in electronics is not an isolated case. In the pharmaceutical sector, the PLI scheme has revived India’s bulk drug and API manufacturing ecosystem. With over 50 projects approved under this category, India has significantly reduced its reliance on imported intermediates and reasserted control over its critical healthcare supply chains. This not only improves national resilience but positions India as a reliable global supplier in life sciences.

The automobile and auto component sector has also seen major strides. With a Rs. 25,938 crores allocation under PLI, the sector has witnessed a shift towards clean and sustainable mobility. The scheme has strengthened India’s transition to electric vehicles and advanced automotive technologies, helping build a foundation for future-ready transportation infrastructure.

One of the most forward-looking dimensions of the PLI strategy is India’s bold emergence into semiconductors and display manufacturing. The government has laid the foundation for a domestic semiconductor ecosystem, recognising its strategic and economic value in the digital age. With incentives structured to support fabrication, design, and packaging, India is carving out its place in the global semiconductor value chain. This effort signals India’s ambition to lead in future technologies and high-tech electronics, no longer as a market alone, but as a serious player in global production networks.

The PLI scheme has also strengthened India’s economic positioning internationally. The scale of actual investments, and the pace at which production milestones are being achieved, reflect growing confidence in India’s economic architecture.

Foreign investors are increasingly viewing India as a stable, reform-oriented destination for long-term manufacturing investments. The policy certainty, performance-linked payouts, and ease of doing business reforms have together contributed to a renewed faith in India's potential as a manufacturing hub. In many ways, India is now seen not just as a consumer market but as a trusted base for global supply chains.

Several sectors linked to the PLI scheme have seen remarkable growth in exports, underscoring India’s growing global competitiveness. Electronics exports have surged sixfold in the last ten years, reaching Rs. 2.41 lakh crores in FY24, up from Rs. 38,263 crores in FY14, demonstrating India's ability to scale high-tech manufacturing for international markets. This impressive growth not only helps narrow trade deficits but also reinforces India's emergence as a trusted global production base.

Simultaneously, India’s dependence on critical imports, from solar modules to electronic components, is now declining steadily. The shift towards domestic production is reinforcing India’s economic self-reliance while securing its place in critical global value chains.

The PLI scheme is a true embodiment of the "Make in India for the world" vision. By linking incentives to actual production outcomes rather than promised intentions, the scheme has ensured accountability, transparency, and real-world results. Unlike previous subsidy models, PLI rewards performance and impact.

At its core, the PLI scheme reflects the Modi government’s ability to think boldly and execute with discipline. It combines fiscal prudence with industrial ambition, ensuring that taxpayer money is used to build long-term capabilities. The design of these schemes has been pragmatic, ensuring outcomes through milestone-based disbursements, performance monitoring, and sector-specific tailoring.

Over the last decade, India’s manufacturing sector has undergone a quiet revolution, powered by the PLI schemes and backed by a vision of self-reliance with global competitiveness. As the nation enters a new phase of economic growth, the foundations laid by these policies will continue to pay dividends for years to come, firmly positioning India on the global manufacturing map.