
NEW DELHI: India’s Production Linked Incentive (PLI) schemes have received a significant boost in the budget for FY 2025-26, with allocations more than doubling in many sectors. The outlay for PLI schemes has increased by a whopping 108% to Rs 19,482.58 crore in FY26 (Budget Estimates) from Rs 9,360.36 crore in FY25 (Revised Estimates).
As per the budget presented by Finance Minister Nirmala Sitharaman in Parliament on Saturday, the Department of Pharmaceuticals has been allocated Rs 2,445 crore, a notable increase from last year’s Rs 2,143 crore. The government aims to incentivise companies to reduce dependence on imports for critical drugs and position India as a global pharmacy.
Similarly, the PLI scheme for textiles has received a substantial boost, with Rs 1,148 crore allocated, compared to just Rs 45 crore in the previous budget estimate. The scheme aims to increase the scale and size of the textile industry.
The Ministry of Electronics and Information Technology (MeiTY) has been allocated Rs 9,000 crore for its PLI scheme, up from Rs 6,200 crore in the previous budget. The scheme aims to increase the production of mobile phones, laptops, tablets, all-in-one computers, servers, and ultra-small form factor devices in the country.
In addition, the Production-Linked Incentive Scheme for the food processing industry has been allocated Rs 1,200 crore, although this is a decrease from the previous budget’s Rs 1,444 crore. The scheme provides financial incentives to promote Indian food brands abroad and supports branding and marketing activities for Indian-branded consumer food products in global markets.
The PLI scheme for automobiles and auto components has been allocated Rs 2,819 crore, down from Rs 3,500 crore in the previous budget. Furthermore, the allocation for the Production Linked Incentive Scheme for advanced chemistry cell battery storage has been reduced by 37.7% to Rs 155.76 crore, from Rs 250 crore in Budget 2024.