Production linked Incentive Goals Assignment

Assignment Task

Introduction

The Government of India announced the Production Linked Incentive Scheme in March-2020 to scale up domestic manufacturing capability accompanied by higher import substitution and employment generation.

So far, the government has announced PLI schemes for 14 sectors including automobile and auto components, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles and apparel, white goods, drones, and advanced chemistry cell batteries.

Motivation:

The scheme aims to give companies incentives for incremental sales from products manufactured in domestic units.

Moreover, the scheme also aims to encourage local companies to set up or expand existing manufacturing units along with focusing on inviting foreign companies to set up shops in India.

The scheme is targeting labor-intensive sectors in the hope to create new jobs for the ballooning employable workforce of India.

Objective:

The major objective of the scheme is to make domestic manufacturing globally competitive and to create global Champions in manufacturing. It is important to make India more compliant with  World Trade Organisation (WTO)  commitments and also make it non-discriminatory and neutral with respect to domestic sales and exports. This scheme supports the labour-intensive sectors and aims to increase the employment ratio in India. This scheme works to reduce down the import bills and boost up domestic production.

Problem Statement:

No Common Set of Parameters: There were no common set of parameters to understand the value addition by companies that have received or are likely to receive incentives under the PLI scheme. At present, different ministries monitor the value addition of their respective PLI schemes and there is no way to compare two different schemes. Also, there are various deliverables such as the number of jobs created, the rise in exports and quality improvement and there is no centralised database to gauge all these.

Target for Companies for Incentives too Steep: Departments and ministries which interact with companies operating in their sector also face certain specific issues. For instance, at times, the target for companies to qualify for incentives are too steep.

Domestic Companies Relied on One or Two Supply Chains: Until last fiscal, only 3-4 companies managed to achieve the incremental sales targets to qualify for the PLI scheme from the fourteen companies that had been approved. Unlike global companies, most domestic companies relied on one or two supply chains which have been severely disrupted and due to no fault of their own, these companies won’t qualify for the incentive.

The incentives under this scheme are calculated on the basis of incremental sales, range from as low as 1% for the electronics and technology products to as high as 20% for the manufacturing of critical key starting drugs and certain drug intermediaries. In some sectors such as advanced chemistry cell batteries, textile products and the drone industry, the incentive to be given will be calculated on the basis of sales, performance and local value addition done over the period of five years

These Economics has been solved by our PhD Experts at My Uni Paper . Our Assignment Writing Experts are efficient in providing a fresh solution to this question. We are serving more than 10000+ Students in Australia, the UK, and the US by helping them to score HD in their academics. Our Experts are well-trained to follow all marking rubrics and referencing styles.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.