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Production Linked Incentive (PLI) Scheme

Social Justice & Development

  • PYQs8
  • Articles1
I

Background

UPSC frequently examines government schemes, their objectives, implementation, impact on economic growth, employment, and specific sectors, aligning with 'Make in India' and 'Atmanirbhar Bharat' initiatives.

The Production Linked Incentive (PLI) scheme is a flagship government initiative designed to boost domestic manufacturing and exports by offering incentives on incremental sales from products manufactured in India. It aims to make Indian manufacturers globally competitive, attract investment, enhance exports, and create employment across various strategic sectors.

II

Facts & tables

Objective
Promote domestic manufacturing, reduce import dependence, and enhance exports.
Mechanism
Provides incentives (typically 4-6% on incremental sales) to companies for products manufactured in India.
Coverage
Implemented across 14 key sectors, including automobiles, electronics, pharmaceuticals, and textiles.
Goal
Attract large investments, create jobs, and establish India as a global manufacturing hub.
Static syllabus anchors
Type Reference
Conceptual area Indian Economy
Institutions & roles
Body Role
Niti Aayog Monitors
Ministry of Textiles Implements
III

Prelims angle

Prelims angle: Multi-statement analysis

Prelims angle: Policy measures

  • Government scheme to boost domestic manufacturing.
  • Offers incentives on incremental sales of manufactured goods.
  • Covers 14 key sectors, including textiles.
  • Aims to attract investment, create jobs, and enhance exports.
  • Key component of 'Atmanirbhar Bharat' initiative.
High-confidence PYQ links
Year Framing tags
2024 Factual recall, Conceptual understanding
2024 Multi-statement analysis, Factual recall
2023 Multi-statement analysis, Policy measures
2018 Multi-statement analysis, Conceptual understanding
2017 Statement-based questions, Factual recall
2016 Multi-statement analysis, Factual recall
2016 Multi-statement analysis, Factual recall
2016 Multi-statement analysis, Policy measures

Timeline

  1. Indian Economy

    Conceptual area

  2. Prelims 2016

    Multi-statement analysis, Factual recall

  3. Prelims 2016

    Multi-statement analysis, Factual recall

  4. Prelims 2016

    Multi-statement analysis, Policy measures

  5. Prelims 2017

    Statement-based questions, Factual recall

  6. Prelims 2018

    Multi-statement analysis, Conceptual understanding

  7. Prelims 2023

    Multi-statement analysis, Policy measures

  8. Prelims 2024

    Factual recall, Conceptual understanding

  9. Prelims 2024

    Multi-statement analysis, Factual recall

  10. 22 more applicants approved under PLI scheme for textiles

    The PLI scheme is a government policy offering incentives on incremental sales to boost domestic manufacturing, attract investment, and create employment across strategic sectors like textiles.

See also

Production Linked Incentive (PLI) Scheme

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