Context:
The Government of India informed that ₹1.88 lakh crore has been invested across 14 sectors under the Production Linked Incentive (PLI) schemes as of June, leading to large-scale manufacturing growth, exports, and employment generation, strengthening India’s industrial ecosystem.
Key Highlights:
Production Linked Incentive (PLI) Scheme Performance
- Total Investment: ₹1.88 lakh crore across 14 identified sectors
- Incremental Production/Sales: Over ₹17 lakh crore
- Employment Generation: 12.3 lakh jobs (direct and indirect)
- Exports: Crossed ₹7.5 lakh crore
- Major contributors: Electronics, Pharmaceuticals, Telecom & Networking Products, Food Processing
Startup India Initiative
- Recognised Start-ups: 2,01,335
- Jobs Created: Over 21 lakh
- Supports entrepreneurship, innovation, and MSME growth
Open Network for Digital Commerce (ONDC)
- Orders Processed: Over 326 million (as of October)
- Promotes open, interoperable digital commerce ecosystem
Strategic Focus Areas
- Electronics manufacturing
- Pharmaceuticals and medical devices
- Telecom and networking equipment
- Food processing and value addition
Relevant Prelims Points:
- Issue: India’s low manufacturing share in GDP and high import dependence
- Causes: Weak domestic supply chains, limited scale, global competition
- Government Initiatives:
- PLI Schemes for manufacturing boost
- Startup India for entrepreneurship
- ONDC for digital market access
- Benefits:
- Increased domestic value addition
- Enhanced export competitiveness
- Large-scale job creation
- Reduced import dependence
- Challenges:
- Regional concentration of investments
- MSME integration gaps
- Global demand fluctuations
- Impact:
- Strengthening Atmanirbhar Bharat
- Improving Ease of Doing Business
- Expansion of India’s manufacturing base
Relevant Mains Points:
- PLI Scheme:
- Incentive-based policy linked to incremental production and sales
- Covers 14 sectors, aligned with industrial and trade policy
- Startup India:
- Facilitates innovation, funding access, and job creation
- Supports India’s demographic dividend
- ONDC:
- Promotes platform-neutral digital commerce
- Enhances competition and inclusivity
- Keywords & Concepts:
- Manufacturing-led growth
- Export competitiveness
- Global value chains (GVCs)
- Digital public infrastructure
- Way Forward:
- Deepen MSME participation in PLI value chains
- Improve logistics and skill development
- Ensure policy stability and timely incentives
- Align PLI with green manufacturing goals
UPSC Relevance (GS-wise):
- GS 2: Governance, government initiatives, digital public infrastructure
- GS 3: Industrial policy, economic growth, employment, exports
- Prelims: Schemes, data points, objectives, sectoral coverage