"A second phase of the PLI programmes is being considered," a senior official told ET, adding discussions to select sectors to which incentives will be continued are underway.
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Companies excluded from earlier PLI rounds will be encouraged to apply. "The new schemes may not be called PLI...but will function with similar intent to encourage local production and import substitution," the official said.
A second official said extension and revision to schemes for sectors such as textiles are being examined.
PLI schemes resulted in actual investments of more than ₹2.40 lakh crore, production or sales of more than ₹22.66 lakh crore, and exports of more than ₹15.2 lakh crore, per government data. Cumulative incentive disbursement as of March 2026 stood at ₹35,354 crore. The PLI initiative has resulted in "remarkable trade performance of these sectors", according to the 2025-26 Economic Survey. To be sure, a few sectors recorded strong export growth, with average annual growth rate (AAGR) exceeding 20% during FY21-FY25.
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"These include IT hardware (77.2%), ACC batteries (45.0%), electronics (38.8 %), solar PV (23.9%), and speciality steel (22.5%)," the survey said.
In contrast, certain sectors showed moderate export growth-with less than 20% AAGR-such as automobiles (14.1%, textiles (7.8%), food products (6.7%), pharma (6.0%), medical devices (6.5%), white goods (4.8%), bulk drugs and active pharmaceutical ingredients (APIs) (3.5%), and drones (3.9%).
The survey noted that most of these sectors have also experienced positive import growth, notably automobiles (15.1), textiles (13.2), food products (12.1), and pharma (7.4), "suggesting a steady expansion of domestic activity alongside continued reliance on imported inputs and technology."