The hum of the assembly line is almost a constant now, punctuated by the staccato clicks of automated testers. It’s early November, and the production floor at a Noida electronics plant is buzzing. Production has surged, up a staggering 146% thanks to the Production-Linked Incentive (PLI) scheme, according to a recent report in ET Manufacturing. The goal: to make India a hub.
The report highlighted that the total budgetary outlay towards the PLI scheme covering 14 sectors stands at ₹1.97 lakh crore. However, the aggregate PLI disbursements up to September 2025 stood low at ₹23,946 crore, representing only 12% of the total envisaged PLI disbursement. That’s the hard reality, though. Money in the door is slower than the initial rollout anticipated.
“It’s a mixed bag,” explains Priya Sharma, an analyst at a Mumbai-based research firm, speaking via a crackly conference call. “Production numbers are impressive, especially in electronics. But the disbursement rate… well, there’s a gap.” She pauses, then adds, “It’s a familiar story, really: ambitious policy, slower-than-expected execution.”
The PLI scheme, designed to boost local manufacturing, is clearly having an impact. Electronics, in particular, are leading the charge. But the report’s numbers also hint at the complexities of the landscape. The scheme has a long runway. The government aims to catalyze growth over several years, but the pace of disbursement raises questions about the scheme’s long-term effectiveness. The gap between outlay and disbursement is a concern, of course.
The manufacturing ecosystem is changing. More companies are setting up shop, encouraged by the incentives. The government is pushing for domestic procurement, and the hope is that this will trigger a virtuous cycle of innovation and job creation. The reality on the ground is more granular, more challenging. Supply chains are still a tangle. Export controls, especially on critical components, remain a hurdle. But the energy on the floor, the relentless push to hit targets, is undeniable.
The challenge now? To translate the initial production surge into sustainable growth, and to ensure that the benefits of the PLI scheme reach all stakeholders. It’s a long game, and the early innings are underway. The question is, can India build a robust, globally competitive electronics manufacturing sector?
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