Making Production-linked Incentive Scheme Work Assessing Priorities
Material type:
- 00129976
Item type | Current library | Vol info | Status | Barcode | |
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Dr VKRV Rao Library | Vol. 59, No. 34 | Not for loan | AI526 |
The production-linked incentive scheme aims to boost manufacturing value added in 14 industries by increasing production, exports, investment, and employment. High growth in these industries is observed, with varying gross value-added growth driven by capital productivity. Skilled labour absorption is high in all PLI industries, but the slower growth of employment suggests the need for new skill sets. Limited exports and reliance on imports due to the non-availability of domestic input supplies and limited input variety reinforce the need to increase domestic value addition across the sectors. To achieve these goals, the PLI incentive architecture should benchmark against defined efficient cost/price instead of net sales, attract foreign investments, be proactive in the Indo-Pacific Economic Framework and the Global Strategy for Securing Critical Minerals Act of 2024, and leverage free trade agreements with South Korea and Japan.
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