PLI Schemes Achieve 28% Of Jobs Target, 76% Of Investment Goal: NITI Aayog Report

India's production-linked incentive (PLI) schemes have achieved just 28% of their employment target despite mobilising 76% of planned investments, according to NITI Aayog's first comprehensive assessment of the manufacturing incentive programme, Business Standard reported.

The 14 schemes generated 8.49 lakh jobs by financial year 2025-26 (FY26), against a target of 30 lakh, highlighting a gap between industrial investment and employment creation.

Investment reached approximately ₹2.4 lakh crore against the targeted ₹3.15 lakh crore, while production stood at ₹22.66 lakh crore, representing 64% of the ₹35.38 lakh crore goal.

The assessment found that the schemes have completed 58% of their combined implementation period, with 578 months elapsed out of 996 months.

Introduced during 2020 and 2021, the programmes have implementation periods ranging from three to 10 years.

NITI Aayog noted that the remaining 42% provides scope for further investment, production expansion and employment generation.

Annual job creation has fluctuated considerably. As per the Business Standard report, employment achievement stood at 86% of the target up to FY23, followed by 85% in FY24 and 156% in FY25.

However, the figure dropped sharply to 31% of the annual target in FY26.

The report attributed the divergence partly to manufacturing gestation periods, as investments generally precede production expansion and subsequent recruitment.

The report, titled Impact Assessment of PLI Schemes, recommended refining programme design to deliver sustainable industrial growth.

Four sectors were assessed as being on track: large-scale electronics manufacturing, pharmaceuticals, telecommunications and networking products, and food products.

However, the assessment identified weaker performance in bulk drug exports, medical device employment and investment under the information technology hardware scheme.

NITI Aayog programme director Ishtiyaque Ahmed maintained that the overall programme had performed successfully, with approximately 70% of participants and performance indicators meeting expectations.

The assessment emphasised that future improvements should focus on translating manufacturing investment into stronger employment and long-term industrial development.