Discuss the relevance of Production Linked Incentive scheme and its impact on Indian economy. (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The Production Linked Incentive (PLI) Scheme is designed to incentivise incremental production for a limited number of eligible anchor entities in each of the selected sectors who will invest in technology, plant & machinery, as well as in R&D.
· The scheme will also have beneficial spillover effects by the creation of a widespread supplier base for the anchor units established under the scheme. Along with the anchor unit, these supplier units will also help to generate massive primary and secondary employment opportunities.
· A key benefit of the PLI Scheme is that it can be implemented in a very targeted manner to attract investments in areas of strength and to strategically enter certain segments of global value chains (GVCs). This will help bring scale and size in key sectors and create and nurture global champions.
· The sectors for PLI have been shortlisted on the basis of their potential for economic growth, revenue and employment generation. The extent of benefit to the rural economy and its criticality in the next few decades has also been considered while finalising the sectors.
· With a focus on building a forward-looking manufacturing segment, the scheme incentivises upcoming technologies that represent the biggest economic opportunities of the 21st century.
· These include Advanced Cell Chemistry Batteries, Electronic & Technology Products and Solar Photovoltaic Modules. These are crucial sectors for sustaining rapid growth in digital economy, electric vehicles and renewable energy. Extremely strong manufacturing capabilities in these are also essential for taking on the Asian competitors who have made blinding progress in one or more of these sectors. It will also aid rural upliftment in India by ensuring continuous electricity availability and digital connectivity.
· The scheme aims to correct this by encouraging large manufacturers to bring technology and to build capabilities for high value output thereby providing higher returns to the upstream producers. It will also enable increase in exports.
· The scheme aims to further strengthen these sectors to enable creation of global champions who will bring in technological upgradation and enhance the value of export basket of the country. It will also encourage these manufacturers to seize the emerging international opportunities, given the changing geo-political orientation of the world.
· Given the scale of incentives, which is around Rs 1,96,000 crore, the manufacturing sector of the country is set to transform in the next few years. Its contribution to the GDP will significantly improve, leading to unprecedented investment and job creation.
aswin 3 years
Please review
IAS Parliament 3 years
Try to provide sub-headings in your answers. Keep Writing.
Saravanan 3 years
Kindly give feedback
IAS Parliament 3 years
Try to provide sub-headings and underline key points and include data to support your arguments. Keep Writing.
Venkateshwaran R 3 years
Kindly provide feedback. Thank you sir.
IAS Parliament 3 years
Concerns and challenges are not needed, end the answer with a good conclusion. Keep Writing.
Venkateshwaran R 3 years
