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PLI Scheme to Lapse UPSC NOTE

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  Program Lapsing The Indian government is letting its $23 billion PLI scheme , designed to boost domestic manufacturing , lapse. It won...

 Program Lapsing

  • The Indian government is letting its $23 billion PLI scheme, designed to boost domestic manufacturing, lapse.

  • It won't be expanded beyond the 14 pilot sectors, and deadlines won't be extended.

Program's Performance

  • Despite attracting 750 companies, the program fell short of its goals.

  • Production targets were missed, and subsidy payouts were delayed.

  • Manufacturing's share of India's economy has actually decreased since the program's launch.

  • Companies faced issues like slow subsidy payouts and bureaucratic hurdles.

  • Some companies were denied subsidies due to non-compliance with rules.

  • Excessive red tape slowed down the scheme's effectiveness.

  • The program did see success in the pharmaceutical and mobile-phone manufacturing sectors.

Alternatives

  • The government is now considering partially reimbursing investments to incentivize manufacturing.

  • The government is still intending to boost manufacturing in India, and is looking for alternative methods.

External Factors

  • India's manufacturing ambitions are also affected by the global trade environment, including U.S. trade policies.

  • The program was launched at a time when companies wanted to move manufacturing away from China, but India had difficulties capitalizing on that moment.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: PLI Scheme to Lapse UPSC NOTE
PLI Scheme to Lapse UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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