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Critically examine the newly launched Production Linked Incentive (PLI) scheme in imparting a competitive edge to the Indian textile sector.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. Critically examine the newly launched Production Linked Incentive (PLI) scheme in imparting a competitive edge to the Indian textile sector. (250 words)

Difficulty level: Moderate

Reference: The Hindu

Why the question:

The Centre has notified a Rs 10,683 crore Production Linked Incentive (PLI) scheme for the textiles industry with a special emphasis on high-value fabrics, and garments.

Key Demand of the question:

To write about the potential of recently launched Production Linked Incentive (PLI) scheme in enhancing competitiveness of India textiles.

Directive word: 

Critically analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a balanced judgment on the topic.

Structure of the answer:

Introduction: 

Begin by writing about PLI for textile sector, its aims and objectives.

Body:

Mention the benefits of the scheme such as employment generations and boosting domestic production in line with the scheme of Aatmanirbhar abhiyan, especially after the ravage of the textile economy post covid pandemic, attracting domestic and foreign investments and promotion of setting up of large-scale manufacturing units.

On the flipside also discuss the cost-benefit analysis of the scheme from the perspective of the companies and entrepreneurs regarding the risk associated with scaling up of operations. Also, mention about the stiff competition India faces from Bangladesh and Vietnam.

Conclusion:

Conclude by writing a way forward to gain confidence of the entrepreneurs and investors to explore options of expanding their business.