ICRA Projects PLI Scheme Capex To Reach Rs 2.3 Lakh Crore By March 2027

Manufacturers participating in the Production Linked Incentive (PLI) and Design Linked Incentive (DLI) schemes are projected to reach an aggregate capital expenditure of Rs 2.3 lakh crore by March 2027, according to an analysis by rating agency ICRA released in Chennai. This projected figure represents 55 to 60 percent of the total expected outlay of Rs 4 lakh crore since the schemes began in FY2022.

As of December 2025, companies had already invested approximately Rs 2.2 lakh crore under the schemes. ICRA expects this figure to rise to the projected Rs 2.3 lakh crore over the next year.

While the PLI scheme has successfully incentivised private sector investments, ICRA found that several sectors are behind their desired investment timelines. Because incentives are linked to incremental sales or production, the slower progress means only 20 percent of the total Rs 3 lakh crore incentive outlay was disbursed or eligible for disbursement by the end of FY2026.

Progress has varied based on domestic capabilities and the existing manufacturing ecosystem. Rapid gains have been recorded in the electronics, pharmaceuticals, and telecom sectors. Meanwhile, sectors like Advanced Chemistry Cell (ACC) batteries and solar photovoltaic (PV) modules are progressing much more slowly.

The schemes have also impacted smaller enterprises and the agricultural sector. The drone PLI scheme has benefited micro, small, and medium enterprises (MSMEs), while the food products PLI has supported farmers and the rural economy.

According to the report, the capital deployment has yielded incremental sales of about Rs 20.4 lakh crore as of December 2025. Exports surpassed Rs 8.3 lakh crore during the same period, representing 35 to 40 percent of the incremental sales, driven by large-scale electronics, pharmaceuticals, food processing, and telecom products.