NITI Aayog Assessment Shows PLI Schemes Reach Only 28% of Employment Target by FY26

India's Production-Linked Incentive schemes have brought in a large share of their targeted investment, but the progress on employment has been much slower so far. 

As per news reports, NITI Aayog's assessment shows that the 14 PLI schemes created 849,069 jobs by FY26 against a combined target of 3 million. This means only 28% of the overall employment target had been achieved at that stage. 

Investment Progress Has Been Stronger 

The schemes mobilised around ₹2.4 trillion in investment against a target of ₹3.15 trillion. Production reached ₹22.66 trillion, compared with the overall target of ₹35.38 trillion. 

The figures show that investment has progressed further than employment. NITI Aayog said this difference also needs to be viewed in the context of how manufacturing projects develop over time. 

More Than 40% of the Scheme Period Remains 

The 14 schemes have completed 58% of their combined implementation period, leaving 42% still remaining. 

According to the assessment, some sectors are already at a more advanced stage, while others are still moving through the investment and project development phase. Manufacturing investments are made before facilities reach full capacity, with production and employment building up later. 

Job Creation Has Varied Over the Years 

Employment generation was at 86% of the annual target up to FY23 and around 85% in FY24. 

It rose to 156% in FY25 before dropping to 31% of the annual target in FY26, showing that job creation has not followed a consistent pattern across the years. 

Four Sectors Found to Be On Track 

Large-scale electronics manufacturing, pharmaceutical drugs, telecommunications and networking products, and food products were assessed as being on track. 

The report also pointed to weak or partial outcomes in bulk drug exports, employment under the medical devices scheme and investment under IT Hardware 2.0. 

NITI Aayog Calls for Refinement 

The assessment said the next stage should focus on refining the schemes according to sector-specific needs.  

It also pointed towards demand-side support, including domestic procurement, export market development and strategic government purchasing. 

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Conclusion 

The PLI programme has made stronger progress in investment and production than employment so far. With 42% of the combined implementation period still left, NITI Aayog has called for changes aimed at improving the schemes' long-term results. 

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