Six of the 14 Production-Linked Incentive (PLI) schemes including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC), and specialty steel, are relatively in the slow lane.
Others, including food processing and mobile phone manufacturing, appear to be well on track to meet the targets set at the time the schemes were announced.
What is PLI Schemes?
The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation.
Launched in March 2020, the scheme initially targeted three industries:
- Mobile and allied Component Manufacturing
- Electrical Component Manufacturing and
- Medical Devices.
The scheme is currently active in 14 key sectors:
- Mobile manufacturing,
- Manufacturing of medical devices,
- Automobiles and auto components,
- Pharmaceuticals,
- Drugs,
- Specialty steel,
- Telecom & networking products,
- Electronic products,
- White goods (ACs and LEDs),
- Food products,
- Textile products,
- Solar PV modules,
- Advanced chemistry cell (ACC) battery,
- Drones and drone components.
Under PLI scheme, Domestic and Foreign companies receive financial rewards for manufacturing in India, based on a percentage of their revenue over up to five years.
Q. Consider, the following statements : (2023)
Statement-I: India accounts for 3.2% of global export of goods.
Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement II is the correct explanation for Statement I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct
Answer – According to the recent WTO’S Global Trade Outlook and Statistics report, India accounts for 1.8 % of global exports of goods. Hence, statement 1 is not correct.
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