Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
3. Critically examine the performance of Production-linked Incentive (PLI) scheme that has been launched for various sectors as a game changer, leading to transformation of India into a manufacturing hub and reducing its burgeoning trade deficit. (250 words).
Difficulty level: Tough
Reference: Indian Express
Why the question:
India’s robust export performance has made a critical contribution to its economic growth in recent times. Despite global economic woes, India’s overall exports, merchant and services combined, grew at 17.33 per cent to $641 billion during April-January 2022-23 compared to $547 billion during the same period last year.
Key Demand of the question:
To write about the performance of Production-linked Incentive (PLI) scheme, its successes and limitations.
Directive word:
Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Introduction:
Begin by giving context of Production-linked Incentive (PLI) scheme.
Body:
First, write about the various sectors for which PLI scheme was launched and its major features – electronics, pharmaceuticals, automobiles, and textiles. Eligible companies are provided with financial incentives based on incremental sales of goods produced in India, for a period of five years. The scheme aims to make India a global manufacturing hub, increase production of quality goods, create employment opportunities, and reduce dependence on imports.
Next, write about the successes and limitations of the above.
Conclusion:
Conclude by writing a way forward to overcome the limitations.
