Context: As part of the Atmanirbhar Bharat Abhiyan, the announced extension of the production-linked incentive (PLI) to 10 more sectors, is a step in the right direction, if implemented effectively and transparently.
Benefits of current PLI scheme:
Issues with increasing tariff to protect domestic firms:
Way Forward:
Conclusion: PLI signals the recognition that laissez-faire won’t work in a fiercely competitive global market, where everyone else — especially China — aggressively uses industrial policy.