The Government has reaffirmed its commitment to bolstering local manufacturing by significantly increasing budget allocations for key industries under the PLI Scheme in 2025–2026 as part of a vigorous drive to boost industrial growth. Many industries have seen significant increases, but the textile industry has benefited the most, seeing their allocation soar from US $ 5.15 million to US $ 131.4 million (Rs. 45 crore to Rs. 1,148 crore).
India’s manufacturing sector has undergone tremendous change due to the Production Linked Incentive (PLI) Schemes. Actual investments as of August 2024 have reached Rs. 1.46 lakh crore (US $ 16.06 billion), and estimates indicate that this amount will surpass Rs. 2 lakh crore (US $ 23 billion) in the upcoming year. In addition to directly and indirectly creating about 9.5 lakh jobs—which are predicted to increase to 12 lakhs in the near future—these investments have already resulted in a notable increase in production and sales, totalling Rs. 12.50 lakh crore (US $ 137.5 billion).
The PLI Scheme’s main objectives are to increase India’s competitiveness internationally, boost local manufacturing capacity, and draw investment to high-tech companies. It seeks to increase industrial growth and establish India as a significant manufacturing hub by focussing on important areas.
The Indian Government has implemented a liberalised Foreign Direct Investment (FDI) policy to encourage industrial and economic growth in order to further this goal. Under the automatic method, the majority of industries, including manufacturing, permit 100 per cent FDI without requiring previous Government approval.
