Examine how the government’s programs to increase access to essential services—like the Jal Jeevan Mission for water supply, the Ujjwala Yojana for cooking gas, and the Pradhan Mantri Jan Arogya Yojana (PMJAY) for healthcare—affect the livelihood prospects and general well-being ...
The Production Linked Incentive (PLI) Scheme was launched in 2020 by the Union Government in three key sectors (mobile manufacturing and electric components, pharmaceuticals and medical device manufacturing) and was later extended to 11 other key sectors with a budget outlay of Rs 1970 billion to crRead more
The Production Linked Incentive (PLI) Scheme was launched in 2020 by the Union Government in three key sectors (mobile manufacturing and electric components, pharmaceuticals and medical device manufacturing) and was later extended to 11 other key sectors with a budget outlay of Rs 1970 billion to create national manufacturing champions and generate employment opportunities for the country’s youth. The minimum production in India as a result of PLI Schemes is expected to be over US$ 500 billion in 5 years.
Role in promoting Atmanirbhar Bharat Mission:
- Creation of large-scale manufacturing capacity: The incentives under this scheme are directly proportional to production capacity/ incremental turnover. Hence, it will help develop large- scale manufacturing facilities and better industrial infrastructure, thus benefiting the overall supply chain ecosystem.
- Import substitution and export promotion: The PLI scheme aims to reduce the gap between India’s highly skewed import-export basket, which is mainly characterized by heavy imports of finished goods. The PLI schemes will promote domestic manufacturing of goods, thereby reducing our dependence on imports and help in expanding the quantum of exports from India in the long term.
- Technology transfer and skill development: The PLI Scheme will help attract foreign investment in India and along with that the advanced technology and expertise thus helping in skill development of our workforce.
- Focus on sunrise and strategic sectors: The PLI scheme covers new growing sectors such as drones and drone components, advanced chemistry cell batteries, Electronics and IT, Pharma etc. Thus, it will help India become future ready.
Challenges in realising these objectives:
- India becoming an assembly unit of imported parts: It is feared that the PLI scheme might degenerate the manufacturing units in India into the assembly of the imported parts. For example, the scheme aims to promote production of Air Conditioners in India, but the critical parts like compressors, valves and coils are being imported.
- Lack of research and development in India: The incentives under this scheme are linked to incremental sales of products manufactured in India, but lack of focus on R&D by the Indian private industry is the major structural weakness. For example, the largest share of value addition accrues the patent owners and the patent rights are kept abroad.
- Possible challenge in WTO: Earlier, Merchandise Exports from India Scheme (MEIS) was challenged in WTO for violation of the WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement) and the decision was not favourable for India. If the goods manufactured under the PLI scheme significantly impacts global market prices then it might be challenged in WTO as well.
- Lacks long term approach: It is being argued that the short-term fiscal PLI incentives cannot overcome the lack of competitiveness in the long run.
Since its launch, the PLI Scheme has attracted much attention and various multinational firms are showing interest in investing in India under this scheme. Going forward, the government needs to ensure that the momentum gained by the scheme is sustained for a long-term growth.
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Role of Government Initiatives in Enhancing Access to Basic Services Government initiatives aimed at improving access to basic services play a crucial role in enhancing the well-being and livelihood opportunities of marginalized sections of the population. Key programs include the Pradhan Mantri JanRead more
Role of Government Initiatives in Enhancing Access to Basic Services
Government initiatives aimed at improving access to basic services play a crucial role in enhancing the well-being and livelihood opportunities of marginalized sections of the population. Key programs include the Pradhan Mantri Jan Arogya Yojana (PMJAY) for healthcare, the Ujjwala Yojana for cooking gas, and the Jal Jeevan Mission for water supply. These initiatives address critical needs and contribute to the overall development and empowerment of disadvantaged communities.
1. Pradhan Mantri Jan Arogya Yojana (PMJAY)
2. Ujjwala Yojana
3. Jal Jeevan Mission
4. Overall Impact on Marginalized Sections
Conclusion
Government initiatives such as PMJAY, Ujjwala Yojana, and the Jal Jeevan Mission play a critical role in improving access to basic services for marginalized populations. They enhance well-being, support economic opportunities, and contribute to poverty alleviation. Continued efforts to expand and refine these programs are essential to addressing the needs of vulnerable communities and ensuring sustainable development.
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