India's PLI Schemes Achieve 28% of Employment Target, NITI Aayog Report Finds

India's PLI schemes have mobilised substantial investment but generated fewer jobs than expected, with a NITI Aayog assessment highlighting gaps in employment and manufacturing performance.

India's PLI Schemes Achieve 28% of Employment Target, NITI Aayog Report Finds

India's production-linked incentive (PLI) programme has attracted significant investment but fallen short of its employment objectives, according to the first comprehensive assessment by NITI Aayog.

The report, titled Impact Assessment of PLI Schemes, found that the 14 manufacturing incentive schemes generated 8.49 lakh jobs by financial year 2025-26 (FY26), achieving just 28% of the overall target of 30 lakh jobs.

While investment and production have made considerable progress, the findings highlight the challenge of converting industrial expansion into large-scale employment opportunities.

PLI Schemes Achieve 76% of Investment Target

The assessment revealed that the schemes mobilised approximately ₹2.4 lakh crore in investments against the planned target of ₹3.15 lakh crore. This represents 76% achievement.

Production reached ₹22.66 lakh crore, equivalent to 64% of the target of ₹35.38 lakh crore.

The figures indicate that the programme has made stronger progress in attracting capital than in creating employment.

Introduced during 2020 and 2021, the 14 PLI schemes cover multiple manufacturing sectors and have implementation periods ranging from three to 10 years.

58% of Programme Implementation Period Completed

According to the assessment, the schemes have completed around 58% of their combined implementation timelines. A total of 578 months have elapsed out of the planned 996 months.

The remaining 42% of the implementation period offers opportunities to increase investment, expand manufacturing capacity and generate additional jobs.

NITI Aayog's assessment suggests that the final phase will be important in determining whether the schemes can meet their broader industrial development objectives.

Employment Generation Slows Sharply in FY26

Job creation under the PLI programme has varied considerably across financial years.

According to figures reported by Business Standard, employment achievement reached 86% of the annual target up to FY23 and 85% in FY24. It increased to 156% in FY25 before falling significantly to 31% in FY26.

The sharp decline highlights the uneven pace of employment generation across participating sectors.

The report also pointed to manufacturing gestation periods as one possible reason for the gap between investment and job creation. Companies generally need time to establish facilities, expand production and recruit workers after committing capital.

Consequently, employment benefits may take longer to materialise than initial investment.

Four Sectors Show Promising Performance

The NITI Aayog assessment identified four sectors as being on track under the PLI programme.

These include:

• Large-scale electronics manufacturing: Supporting domestic electronics production and manufacturing capacity.

• Pharmaceuticals: Encouraging investment and strengthening India's pharmaceutical manufacturing ecosystem.

• Telecommunications and networking products: Promoting domestic production of telecom equipment and related products.

• Food products: Supporting investment and expansion in food processing and manufacturing.

However, the report also identified areas where performance needs improvement.

Bulk drug exports, employment generation in medical devices and investment under the information technology hardware scheme were among the weaker areas highlighted in the assessment.

NITI Aayog Recommends Improvements to PLI Schemes

The assessment recommended refining the design and implementation of the incentive programmes to improve their overall impact.

A key priority is ensuring that investments lead to stronger manufacturing output and sustainable employment opportunities.

The report emphasised the need to address sector-specific challenges and improve the effectiveness of the schemes during their remaining implementation periods.

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

However, the employment figures underline the need for continued improvements.

Focus Shifts Towards Jobs and Long-Term Manufacturing Growth

India's PLI programme is intended to strengthen domestic manufacturing, attract investment, improve production capacity and create employment.

Although the schemes have made progress in investment mobilisation, their relatively low employment achievement remains a significant concern.

The remaining implementation period will be crucial for translating financial commitments into higher production and more job opportunities.

Conclusion

NITI Aayog's assessment shows that India's PLI schemes have made meaningful progress in attracting investment and increasing production, but employment generation remains below expectations. Improving sector-specific implementation and converting investments into sustainable jobs will be essential to achieving the programme's long-term manufacturing goals.