INDIA POLICY · MAY 2026
Deep Dive
India's
₹1.97L cr
PLI Bet
Who delivered, who disappeared — and why the government is quietly redesigning its most ambitious industrial programme
14%
Of outlay disbursed
as of Dec 2025
+146%
Electronics production
growth FY21→FY25
2.8%
ACC battery target
actually reached
14 sectors · ₹28,748 cr paid · ₹20.4L cr cumulative sales · 12.6 lakh jobs
02
The Disbursement Reality
Outlay allocated vs. % actually paid out
Programme rate
14.6%
Overall payout
as of Dec 2025
Top recipient
₹15,473cr
Electronics
single sector
Zero claim
₹0
ACC Battery vs
₹18,100cr outlay
Sectors · ranked by % disbursed Outlay Paid Zero
Sector
₹0
₹10k
₹20k
₹30k
₹40k cr
Paid · cr
Rate
Gravitywell Research
03
The Outperformers
Investment realised vs. 100% target · top sectors
★ Star performer
Mobile / Electronics
+146%
Production FY21→FY25
₹2.62L cr exports · 210% of investment target · smartphones now India's #1 export
Outperformer
Pharmaceuticals
237%
Investment vs. target
Trade flip: bulk drug deficit → ₹2,280 cr surplus. 191 new APIs made in India.
On track
Auto & EV
13.6L
EVs supported
₹35,657 cr invested · disbursements up 6× in FY25 · 48,974 jobs
Investment vs target
% of launch target realised · dashed = 100%
Investment vs target: Pharma 237%, Electronics 210%, Telecom 122%, Bulk Drugs 110%, Auto 53%.
Gravitywell Research
04
The Underperformers
Capacity / target achievement rate
Achievement against headline target · worst → best
ACC Batteries
2.8%
Textiles
~4%
IT Hardware
~18%
Solar PV
48%
Specialty Steel
53%
ACC Battery Storage
₹0
Disbursed vs
₹18,100 cr outlay
1.4 GWh
Built vs
50 GWh target
Tata, Exide & Amara Raja building gigafactories outside PLI — market spoke.
Textiles — MMF & Technical
0
Plants built
of 64 approved
₹40 cr
FY25 payout vs
₹10,683 cr
Reopened 4×. Bangladesh/Vietnam cost gap is structural — incentives can't fix.
Solar PV Modules
8/12
Firms likely to
miss targets
14%
Polysilicon vs
upstream target
Govt refused extension — rewarding non-performers incl. Reliance, Adani, JSW.
IT Hardware (PLI 2.0)
₹3,000cr
Committed vs
₹17,000 cr
14M
Units market —
too small to export
Dell, HP, Lenovo enrolled but won't scale. No component base — what ECMS targets.
Gravitywell Research
05
The Verdict
Achievement vs. original launch targets
Overall PLI · how much of each launch target was reached
Production
64%
Investment
57%
Jobs created
32%
Incentives paid
14%
2025–26 Policy Pivot
PLI → Capex Reimbursement
Cabinet cleared ECMS · ₹22,919 cr Electronics Component Manufacturing Scheme — shifting from "produce and collect" to "invest and claim." FY26 budget: electronics PLI +84%, ACC battery slashed ₹2,500 cr → ₹156 cr. No new sectors.
✓ What worked
Smartphones: zero → India's #1 export in 5 years
Pharma: reversed structural bulk drug trade deficit
Medical devices: 54 first-in-India products
Drones: 7× sector growth from near-zero base
✗ What failed
ACC batteries: structural capital & tech gap
Textiles: can't beat Bangladesh/Vietnam costs
Jobs at 32% — high-tech ≠ labour-intensive
Solar upstream bottleneck never addressed
Sources · PIB Dec 2025 · CareEdge Jan 2026 · IEEFA/JMK Research · Reuters · Business Standard · MoC
Gravitywell Research · gravitywell.research