The design and structural flaws in the Production-linked incentive (PLI) scheme need to be bridged to completely manifest the benefits in the domestic manufacturing sector.
Authors
Surendar Singh, Associate Professor, Jindal School of Liberal Arts and Humanities, O.P. Jindal Global University, Sonipat, Haryana, India
Bibek Ray Chaudhuri, The Indian Institute of Foreign Trade, New Delhi, India
Summary
Production-linked incentive scheme has emerged as a cornerstone of India’s industrial policy under the Self-reliant India initiative. The overarching objective of the PLI scheme is to augment the capacity, competence, and capabilities of the domestic manufacturing sector. However, the scheme has many design and structural flaws and missing links that could undermine its objective of augmenting domestic manufacturing and making the country a centre of global manufacturing. There is a need to overhaul its design not only to align it with trade policy but also with the country’s comparative advantage in labour-intensive manufacturing.
Published in: Economic & Political Weekly
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