PLI/DLI Scheme Capex To Touch Rs 2.3 Lakh Cr by March 2027

Chennai: By the end of this financial year, manufacturers would incur total capital expenditure of Rs. 2.3 lakh crore or 55 to 60 per cent of the total capex expected under PLI and DLI schemes.

Since the launch of the program in FY22, companies have invested 55-60 per cent of the expected total capex of Rs. 4 lakh crore. Around Rs. 2.2 lakh crore has been invested by December 2025 and ICRA projects it to rise to Rs. 2.3 lakh crore by March 2027.

According to ICRA, while the PLI program has generally met its objectives of encouraging private sector investment, many sectors are lagging behind in terms of desired investment timelines and progress varies across sectors.

While rapid gains have been seen in electronics, pharmaceuticals and telecommunications, sectors such as ACC batteries and solar PV modules are progressing more slowly. Drones PLI benefits micro, small and medium enterprises (MSMEs) and PLI food products support farmers and the rural economy.

Many sectors did not meet the intended timeline as progress varied depending on domestic capabilities and manufacturing ecosystem.

Therefore, only 20 per cent of the total stimulus outlay of Rs 3 lakh crore has been distributed or is eligible for distribution by the end of FY 2026. Incentives in most industries are linked to increased sales/production.

The current capital expenditure allocation has led to increased sales of around Rs. 20.4 lakh crore by December 2025.

Exports exceeded Rs. 8.3 lakh crore by December 2025, 35-40 per cent of incremental sales/production, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, telecom and network products.

Companies will become eligible to receive residual incentives as increased production or sales are achieved over time.