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× #1 Viksit Bharat @ 2047: Economic Roadmap and Challenges #2 Re-evaluating India’s GDP Calculation Methodology and Base Year #3 Capital Expenditure (Capex) as a Driver of Economic Growth #4 The Persistent Challenge of “Jobless Growth” in India #5 Rationalization of the GST Regime and Inclusion of Excluded Items #6 The National Monetisation Pipeline (NMP): Progress, Hurdles, and Economic Impact #7 Fiscal Consolidation Path and Review of the FRBM Act #8 Production Linked Incentive (PLI) Scheme: Sectoral Impact and Employment Generation #9 Introduction To boost manufacturing, reduce import dependency, and make India an integral part of global supply chains, the Government of India launched the Production Linked Incentive (PLI) Scheme in #10 The Gig Economy: Growth, Opportunities, and the Need for Social Security #11 PM Gati Shakti National Master Plan: Integrating Infrastructure and Logistics #12 Revitalizing Public-Private Partnership (PPP) Models for Infrastructure #13 India’s Semiconductor Mission: Building a Resilient Electronics Supply Chain #14 Strategic Disinvestment Policy: Rationale, Progress, and Criticisms #15 Central Bank Digital Currency (CBDC): The Future of the Indian Rupee #16 Free Trade Agreements (FTAs): Opportunities, Risks, and Impact on Domestic Industry #17 Corporate Debt Market Deepening and the Role of the Corporate Debt Market Development Fund #18 The Challenge of Rising Regional Economic Disparities #19 Ease of Doing Business: From Global Rankings to Ground-Level Reforms #20 India’s Energy Transition: Economic Costs and Opportunities #21 Inflation Targeting and the Monetary Policy Committee (MPC): An Evaluation #22 Role of NITI Aayog in Cooperative and Competitive Federalism #23 Reforming the Special Economic Zone (SEZ) Act (DESH Bill) #24 Tackling Inequality: Wealth and Consumption Disparities #25 National Logistics Policy: Reducing Costs and Improving Efficiency #26 The Role of Monetary Policy in Controlling Inflation #27 How Fiscal Policy Impacts Economic Growth and Stability #28 The Effect of Public Debt on National Economies #29 The Influence of Interest Rates on Investment and Consumption #30 Global Economic Trends: How AI and Emerging Markets Shape Growth #31 Analyzing the Economic Impact of War and Conflict on National Economies #32 National Income #33 sectors of economy #34 circular flow of income #35 Demand #36 Supply #37 Five-Year Plans of India: Steering the Nation’s Economic Development #38 Consumer Equilibrium: Understanding Optimal Consumer Choice in Economics #39 Budget: A Comprehensive Economic Blueprint for Planning and Progress #40 Inflation: Understanding the Rise in Prices and Its Economic Impact #41 Money Aggregates: Understanding the Different Measures of Money Supply #42 Brain Drain: Understanding the Loss of Talent and Its Impact on National Growth #43 The impact of international trade agreements on export competitiveness and market access. #44 Assessing the effects of foreign aid on economic development in recipient countries. #45 Effects of gig economy on labor markets. #46 Evolving landscape of international trade in the post-COVID era. #47 Banking: The Backbone of Economic Development #48 Understanding the Business Cycle: Phases, Causes, and Implications #49 Understanding the Balance of Payments: Components, Importance, and Economic Impact #50 Understanding Stagflation: Causes, Effects, and Policy Challenges #51 Cryptocurrency and the Future of Money #52 Stock Market Volatility and Investor Behavior #53 Interest Rate Changes and Their Ripple Effects #54 Crowdfunding and Alternative Investment Models #55 Financial Inclusion through Digital Platforms #56 Poverty Alleviation Programs: Successes and Shortcomings #57 Income Inequality and Redistribution Mechanisms #58 Role of Education and Health in Human Capital Development #59 The Informal Economy: Size, Benefits, and Challenges #60 Gender Economics: Women in Labor Markets #61 Universal Basic Income (UBI): Can It Work? #62 ESG Investing and Sustainable Finance: Redefining Capitalism #63 Venture Capital and Startup Ecosystems: Fueling the New Age of Entrepreneurship #64 Inflation-Indexed Bonds and Their Relevance: A Safe Haven in Volatile Time #65 Sovereign Wealth Funds and Global Influence: Power Beyond Borders #66 Shadow Banking: An Unregulated Threat or Financial Innovation? #67 Microfinance and Poverty Reduction: Real Impact or Illusion?

INDIAN ECONOMY

Introduction

To boost manufacturing, reduce import dependency, and make India an integral part of global supply chains, the Government of India launched the Production Linked Incentive (PLI) Scheme in March 2020. The scheme offers financial incentives to companies based on incremental sales of goods manufactured in India, thereby encouraging both domestic production and foreign investment.

Outlay: ₹1.97 lakh crore over 5 years
Target: 14 key sectors including electronics, pharma, auto, textiles, semiconductors, and solar modules.

Objectives of PLI Scheme

🔹 Boost domestic manufacturing
🔹 Enhance export competitiveness
🔹 Attract FDI and global supply chains
🔹 Promote job creation and innovation
🔹 Develop core industrial capabilities

Key Sectors under PLI and Budgetary Allocations

Sector Allocated PLI (₹ Crore) Key Impact Areas
Mobile Manufacturing & Specified Electronics 40,951 Exports, import substitution
Pharmaceuticals (API + formulations) 21,940 Reduce China dependency
Automobile & Auto Components 25,938 EVs, fuel-efficient vehicles
Telecom & Networking 12,195 5G, routers, telecom infra
Solar PV Modules 24,000 Green energy, import replacement
Textiles (MMF & Technical Textiles) 10,683 Global value chain entry
Semiconductors & Display 76,000 Strategic tech & Atmanirbhar Bharat

 

Other sectors include white goods (ACs & LEDs), food processing, drones, specialty steel, medical devices, and IT hardware.

Sectoral Impact

1. Electronics Manufacturing (Mobile Phones)

  • India became the second-largest mobile phone producer globally.

  • Apple, Samsung among major investors.

  • Exports crossed ₹90,000 crore in FY24.

  • Created ~1.2 lakh jobs (direct & indirect).

2. Pharmaceuticals & APIs

  • Over 50 greenfield units set up for key bulk drugs.

  • Lower import dependence on China (e.g., for antibiotics & painkillers).

  • Over 20,000 jobs generated (as per DoP report).

3. Automobiles & EVs

  • Boosted electric vehicle ecosystem—e.g., Ola Electric, Tata Motors.

  • Major global firms committed to EV battery and component manufacturing.

  • Potential to create ~7.5 lakh jobs by 2030 (NITI Aayog estimate).

4. Telecom

  • Promoted Make in India 5G with firms like Tejas Networks, Dixon.

  • Reduced dependence on Chinese equipment.

  • Over 13,000 jobs created in FY24.

5. Textiles

  • Increased investment in MMF & Technical Textiles, with hubs in Gujarat, Tamil Nadu.

  • Over ₹1,500 crore worth of investment proposals approved.

  • Estimated employment impact: 7 lakh+ over the scheme lifecycle.

6. Semiconductors

  • Initial approvals (e.g., Micron, Tata-Elxsi, Tower Semiconductor tie-ups).

  • Capex-heavy sector; long-term strategic returns expected.

  • Indirect job potential: ~85,000+ in coming decade.

Employment Generation: A Key Pillar

Direct vs Indirect Jobs

Sector Direct Jobs (Est.) Indirect Jobs (Est.)
Electronics 1.2 lakh 2.5 lakh+
Pharma 20,000 50,000+
Auto & EVs 50,000 2–3 lakh (by 2027)
Textiles 1.5 lakh 5.5 lakh+
Telecom 13,000 30,000+

 

👷 Total potential: Over 60 lakh jobs across sectors by 2027–28.

Bottlenecks and Challenges

🔸 Delays in Capex Disbursal – Companies face procedural delays in incentive payouts.
🔸 Global Economic Slowdowns – Export-linked sectors face demand uncertainty.
🔸 Logistics & Infrastructure Gaps – Especially for electronics and textiles.
🔸 Skilled Labour Shortage – Need for reskilling to meet tech manufacturing needs.
🔸 Limited MSME Participation – Bigger players dominate PLI benefits.

Policy Suggestions for Enhancing Impact

✅ Faster incentive release mechanisms with real-time monitoring
✅ Skill training through ITIs, NSDC for high-tech sectors
✅ Encourage MSME consortiums to enter manufacturing
✅ Strengthen R&D support and testing labs in key PLI sectors
✅ Integrate with Make in India, Startup India, and Skill India initiatives

Conclusion

The PLI scheme marks a paradigm shift in India’s industrial strategy, transitioning from subsidies to performance-based incentives. It not only boosts domestic value addition but also acts as a magnet for FDI and global supply chain diversification.

However, the true success of PLI lies in balancing output targets with employment generation, ensuring inclusivity and resilience across all levels of industry.

PLI is not just a production booster—it’s a blueprint for India’s manufacturing-led employment renaissance.