The disbursement of incentives under the production Linked Incentive (PLI) scheme is expected to almost double in the next financial year from the pay-outs for the current financial year and the sectors that will lead the pack with maximum share would be electronics, auto and pharma.

The outlay for incentives for 2025-26 for all 14 sectors has been pegged at around Rs 19,500 crore, which is 76% higher than Rs 11037 crore that is expected to be paid out this financial year, budget documents show.

The payout of incentives this year too will fall short of the budget estimates of Rs 15,793 crore as all the sectors barring large scale electronics manufacturing, pharmaceuticals and telecom equipment are lagging behind in achieving the expected output.

Of the total outlay for next year, around Rs 8885 crore has been earmarked just for the scheme for Large Scale Electronics Manufacturing. This year this sector is expected to get Rs 5747 crore.

Allocation for pharma is Rs 2300 crore for next year as against this year’s expectation of Rs 2046 crore. Pharma is the only sector where the disbursement of incentives will be higher than the budget estimates.

Around Rs 2818 crore is the allocation for PLI for automobiles and auto components, Rs 1965 crore for telecom equipment, Rs 1200 crore for food processing and Rs 1148 for textiles.

The total outlay for all 14 PLI schemes is Rs 1.97 lakh crore. The government has disbursed Rs 1,596 crore under the Production Linked Incentive (PLI) scheme for six sectors including electronics and pharma in the first half of this financial year.

So far the disbursement under the scheme stands at Rs 11,317 crore since its launch. The total outlay under the scheme is Rs 1.97 lakh crore for all  the 14 sectors covered by it. In April-September of 2024-25 around Rs 1596 crore has been disbursed.

In 2022-23 companies in eight sectors were given an incentive of Rs 2968 crore while in 2023-24 nine sectors got the benefit of Rs 6753 crore for additional production.

The budget also laid to rest the efforts to have a PLI scheme for toys and leather and footwear. In her budget speech Finance Minister Nirmala Sitharaman announced a scheme for making India a global hub for toys by focussing on development of  clusters, skills and manufacturing ecosystem.

For leather and footwear a focus product scheme will be implemented, the finance minister had said. The scheme will support design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products.