Policy to Production: How Incentives Are Reshaping Industry

India’s industrial policy is no longer confined to whitepapers and press notes — it’s actively shaping investment flows, plant expansions, and global supply chain strategies. Over the last few years, the Production-Linked Incentive (PLI) schemes, targeted subsidies, import restrictions, and state-level incentives have transformed the industrial map of India. This month’s cover story dives deep into how policy frameworks are now acting as strategic levers — not just enabling, but engineering outcomes. From a new electronics cluster in Tamil Nadu to green hydrogen initiatives in Gujarat, we examine how capital allocation decisions are being increasingly driven by government playbooks.

Industrial policy in India has undergone a quiet, powerful evolution. It’s no longer just about compliance or facilitation — it's now a strategic lever. Whether it’s the Production-Linked Incentive (PLI) schemes, import substitution, or green manufacturing credits, policy is shaping what gets made, how it gets made, and where it gets made. This edition traces the ripple effects of key incentives on ground-level production. We decode policy impacts across core sectors — electronics, automotive, textiles, energy — and speak with leaders whose investment strategies are being influenced by the policy landscape.