Kunal RastogiAIR 15 · CSE 2023 · 263 wordsTheir whole copy
Opening
PLI Scheme was launched under the aegis of Commerce Ministry to promote domestic production in 13 sectors by investing 1.97 lakh crore. It was taken to achieve Self-Sufficiency under Aatmanirbhar Bharat. PLI Scheme Cornerstone of Aatmanirbhar Bharat
Body · points and prose
incremental production
- includes textile, specialty steel, electronic device
- incentives vary from 2% - 5%, depending upon sector and level of production.
PLI Scheme Cornerstone of Aatmanirbhar Bharat
(1) Economy a) boost local production of capital good - aid in gross Capital formation b) Expanding the private Sector by inviting
FDI. eg > Micron under Semi Conductor Mission.
(2) Demand a) Increased demand of locally produced goods - expansion of manufacturing sector. b) Greater broadbased employment, counter problem of dwarfism of MSME [ES-2017-18]
(3) Vibrancy a) Help diversify Indian production basket
- aid in cushioning external pressures b) Creating Positive Spillover effect by creating ancillary industry. eg Textile → agriculture → machinery → woman empowerment
(4) Infrastructure - Aid augur govt treasury through taxation → use → Health, PM GAT I shakti etc.
Challenges to PLI (1) Miniscule incentives in comparison to the global demand market. eg > India Semicon → 7-sbn$, Chips Act → 100bn$
(2) Regulatory cholestrol [ES-2016-17] due to bureaucratic inertia and judicial pendency (3) Infrastructure still poor, in comparison to global competitor. eg) Logistic → 14%. (4) Industry - Citizen Skill mismatch. eg) India Skill Report → 45.9% unemployable. (5) lack of crowding in from domestic private sector - eg GCF (pvt) → only 25%.
Way forward (1) Promoting PPP under Kelkar committee (2) Improving Education outcome by following NEP, 2020 (Kasturirangan committee) (3) Infrastructure Synergy (NLP, 2022) (4) Currency Convertibility → Tarapore committee
Close · a way forward
Above steps would enable India to become Aatmanirbhar and become Viksit Bharat by 2047 (Panch Pran)