By Naraway
In this article
India announced its Production Linked Incentive schemes in 2020-21: payments to manufacturers for each additional rupee of goods made in India, across 14 sectors. Six years on, DPIIT's figures to 30 June 2026 show where the money has actually gone.
Source: DPIIT data to 30 June 2026, via Deccan Chronicle and Angel One.
Electronics Took More Than Half
Large-scale electronics manufacturing had received ₹19,091 crore by June 2026, more than half of everything paid. The visible result is the iPhone: India exported a record ₹2 lakh crore of iPhones in FY26, its largest branded export, from five factories run by Tata and Foxconn. At the other end, the schemes for high-efficiency solar modules and advanced chemistry cell batteries had paid nothing yet.
What a Factory in India Involves
Land
Industrial plots are allotted mostly through state industrial development corporations, each with its own rates and incentive policy.
Approvals
Factory licence, pollution consent to establish and operate, fire, and building approvals, largely at state level.
Standards
Products under a Quality Control Order need BIS certification before sale, including those made in India.
Incentives
PLI at the national level, plus state capital subsidies, power tariff and stamp duty concessions.
"Cost of setting up a factory in India" is one of the most searched manufacturing questions, and it has no national answer: land prices, power tariffs and incentives differ more between states than between many countries.
The Timing Problem
Business Standard's review of the schemes found that progress and timelines vary widely by sector. Incentives are paid against achieved production, so a plant that starts late earns less of the scheme window. Disbursements rose by about ₹8,000 crore between December 2025 and June 2026 alone, as more plants reached their targets.
Part of Naraway's research series India Market Entry in 2026.
In short
India's Production Linked Incentive (PLI) schemes pay manufacturers a share of incremental sales across 14 sectors, against an approved outlay of about ₹1.91 lakh crore. By 30 June 2026, the government had disbursed ₹36,754 crore; companies had invested ₹2,58,835 crore and recorded ₹23.79 lakh crore of production and sales, with more than 14.57 lakh direct and indirect jobs. Large-scale electronics manufacturing had received the most, ₹19,091 crore, while the solar module and advanced battery cell schemes had paid nothing yet.
- 14 PLI schemes; approved outlay about ₹1.91 lakh crore.
- Disbursed: ₹36,754 crore by 30 June 2026, up from ₹28,748 crore in December 2025.
- Investment ₹2,58,835 crore; production and sales ₹23.79 lakh crore; 14.57 lakh jobs.
- Large-scale electronics: ₹19,091 crore, more than half of all disbursements.
- Solar PV modules and ACC batteries: no disbursement yet.
Sources
- Centre disbursed Rs 36,754 crore to beneficiary companies under PLI schemes, Deccan Chronicle
- PLI incentives total ₹36,754 crore since 2020, Angel One
- Indian govt disburses ₹28,748 crore under 14 PLI schemes till December 2025, Angel One
- PLI incentive schemes achieving ambitions, but timelines and progress vary, Business Standard
- Apple iPhone exports hit record Rs 2 lakh crore in FY26, IANS
Frequently Asked Questions
What is the PLI scheme?
Production Linked Incentive schemes pay eligible manufacturers a percentage of incremental sales of goods made in India over a base year, for a fixed number of years, in 14 notified sectors.
How much has been paid under PLI schemes?
₹36,754 crore up to 30 June 2026, against an approved outlay of about ₹1.91 lakh crore.
Which sector has received the most PLI money?
Large-scale electronics manufacturing, with ₹19,091 crore disbursed by June 2026.
How many jobs have PLI schemes created?
More than 14.57 lakh direct and indirect jobs, according to DPIIT data up to June 2026.
Have all PLI schemes paid out?
No. The schemes for high-efficiency solar PV modules and advanced chemistry cell batteries had not disbursed any incentive by June 2026.
