Production Linked Incentive Scheme (PLI) or more commonly known as PLI Scheme offer monetary incentives in order to boost the domestic production of automotive technology products that are advanced. And this is done to attract more investment in the automotive production value chain. Another goal behind the PLI Scheme is to encourage foreign business organizations to find workforce in India, as well as, encourage domestic production to create job opportunities. This is the basic PLI scheme details and there are still many that have doubts regarding PLI scheme benefits and PLI scheme guidelines. So, in this article, we will take a closer look at these things and clarify how PLI schemes help in the development of our economy.
As the name suggests, PLI scheme is a very unique initiative that provides incentives to domestic industries in order to boose the local production. And this in itself has a massive impact on the economy owing to the fact that when domestic production increases, the tailor-made products will be able to satisfy the needs of a niche audience. Having local production also means lower import bills which is also crucial. Also, as per the PLI scheme the government will be able to encourage the businesses to expand their operations and by doing so, increase their overall production. This means that businesses should be able to hire more people and invest more in R and D or other innovations. Both these go a long way in supporting the development of the economy.
Apart from this, there are also other primary benefits that PLI schemes offer for the development of a nations’ economy. That include, neutralizing the total exports as well as imports of a country in a non-discriminatory way. And one of the most effective ways to do this is by giving more importance to the local industries so that they can develop while at the same time become a crucial part of developing a nation’s economy.
As many of us know, India is primarily a labour-intensive workforce and this is owing to the country’s population. Also in India, the government focus on capital influx for the growth but one of the biggest issues related to capital-intensive growth of a country is that, under this method, the returns can only be generated after a long term. With PLI schemes, the government of the country can focus more on the short-term growth strategies and by doing so, they will have a better chance of balancing export as well as imports.
Now, let’s take a closer look at the various important highlights of the PLI scheme and this includes:
- Apart from the things mentioned above, the scheme can also bring back old designs as well as product customs. And this particular feature of the scheme can contribute heavily to bringing back and empowering forgotten artistry and the artisans. This can in turn lead to better product diversity as well.
- PLI scheme and its framework gives primary importance to reward the increased production.
As you can see, the importance of PLI scheme when it comes to how much it can contribute to the growth of a nation’s economy is massive and it is a great boon for local businesses as well. Apart from that, the PLI scheme is a great way to generate more employment for the nation’s youth.