NITI Aayog Report Finds PLI Schemes Lagging in Job Creation
NITI Aayog reports that India's PLI schemes attracted Rs 2.4 lakh crore in investment but met only 28 percent of their employment targets.
A first comprehensive impact assessment by NITI Aayog, prepared with the Indian Institute of Management Ahmedabad, reveals a significant gap between industrial investment and job creation within India's 14 Production Linked Incentive (PLI) schemes. As of March 2026, the programs mobilized Rs 2.40 lakh crore—approximately 76 percent of the Rs 3.15 lakh crore goal—and generated production worth Rs 22.66 lakh crore, reaching 64 percent of the target.
Despite these gains, the schemes generated only 849,069 jobs, meeting just 28 percent of the 30.18 lakh employment target. The report attributes this shortfall partly to manufacturing gestation periods, where capital investment typically precedes recruitment. While electronics, telecommunications, pharmaceutical drugs, and food products are broadly on track, bulk drug exports and medical devices have shown weaker performance.
NITI Aayog officials maintain the program is performing well. Programme director Ishtiyaque Ahmed stated that 70 percent of players and indicators are on track, while Vice Chairman Ashok Kumar Lahiri emphasized that manufacturing is an engine of productivity-led growth. However, the think tank recommended refining scheme designs to bridge the employment gap and reducing dependence on imported high-value components to transition from simple assembly to advanced technologies.
