Downloads: 8 | Views: 354 | Weekly Hits: ⮙1 | Monthly Hits: ⮙2
Research Paper | Economics & Finance | India | Volume 12 Issue 7, July 2023 | Popularity: 5.3 / 10
A Comprehensive Study of Production-Linked Incentive (PLI) Scheme, as a Catalyst for Indian Economy
Anil Kumar Sharma, Dr. Renu Sharma
Abstract: The recovery of the Indian economy after the Covid-19 pandemic has sent a message that the country is fast emerging as a key driver of global growth. The National Statistical Office?s estimate released on January 6, 2023 says that the economy will grow at 7% in financial year 2022-23. In the current international economic scenario where global value chains (GVCs) are being reset, India has seen a strategic opportunity to become a prominent global manufacturing player. A progressive policy approach is being taken by the Indian government to improving the ease of doing business like scrapping 1, 500 irrelevant laws, introducing a competitive corporate tax regime, the availability of skilled labour, the presence of large consumer markets with raising per capita incomes. India has potential to enhance exports of quality products. A stable multi-party democracy make India a favourable manufacturing destination. India has to reduce global dependency on a single-source country, which was witnessed during the last decade. To achieve this strategic vision, the government introduced the production-linked incentive (PLI) scheme in 14 key manufacturing sectors, with an outlay of ?1.97 lakh crore in November 2020. This is a well-laid-out scheme with consideration for investment, production volumes, enhanced exports with domestic value addition, and employment generation. Incentive rates for the scheme have been designed in a tapering format to motivate and encourage industries to improve their existing potential and become drivers of self-sustaining drivers of an ecosystem and thrives well even after the conclusion of the incentive regime. While applicants are incentivised to perform on several indicators, the government ensures the necessary support for regulatory approvals along with the availability of facilities to applicant companies through Centre-state coordination. In addition, the encouragement to invest in research and development for quality product development enables our industries to align with emerging global trends.
Keywords: PLI-Potential LinkIncentive scheme, GVC-Global value Chain, SFURTI-Scheme of Fund for regeneration Industries, EC-Empowered Committee, MEITY-Ministry of Electronics Information Technology, DPEIIT-Department of Industry and internal Trades, DGFT-Director General of Foreign Trade, DOT-department of Telecommunication, NPA-Non Performing Assets, MSME-Medium Small and Micro Enterprises, CPE-Customer premises Equipment, NCLT-National Company Law Tribunal, IOT-Internet of Things, EGOS-Empowered group of Secretaries, ToT-Transfer of Technology, LACM-Large Scale electronic Manufacturing, TUFs-Technology Up gradation Fund scheme, API-Active Pharmaceutical Ingredients, PV-Photo Voltaic (Modules of Batteries), SS-Speciality Steel
Edition: Volume 12 Issue 7, July 2023
Pages: 1603 - 1611
DOI: https://www.doi.org/10.21275/SR23721100550
Make Sure to Disable the Pop-Up Blocker of Web Browser