Question 1 · 10 marks · 39 words written
Opening
Employment Linked Incentive (ELI) and Productive Linked Incentive (PLI) both aim to boost economic growth but work via different forces of market demand and supply.
Body
Different approaches
→ PLI
* ① Incentive to firms for increasing Production
* ② Aims to reap economies of scale by expansion of output
* ③ Incremental sales approach
* ④ Attracts foreign investment as well as domestic investment
* ⑤ To enhance export oriented growth
* ⑥ PLI on Champion Sectors where India has comparative advantage (Textiles, labor-intensive)
→ ELI
* ① Incentive to firms for increasing labor demand
* ② Aims to provide job opportunities and reap demographic dividend
* ③ To enhance inclusive growth
* ④ ELI on all sectors with certain number of jobs being created
Focus on distinct outcomes
→ PLI
* ① Outcome would be India as manufacturing hub
* ② Achieve high levels of GDP via supply side production
* ③ Enhances Self Reliance and integrate into Global value chains
→ ELI
* ① Human capital formation
* ② outcome would be minimise gap between labor demand and labor supply
* ③ To arrest urban rural migration and increase formal jobs
Close
However both are designed to boost GDP and make India viksit Bharat by 2047.