{"id":282711,"date":"2024-02-14T19:32:24","date_gmt":"2024-02-14T14:02:24","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=282711"},"modified":"2024-02-15T13:52:23","modified_gmt":"2024-02-15T08:22:23","slug":"on-issues-with-pli-scheme-in-the-textiles-sector-deeper-reforms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/on-issues-with-pli-scheme-in-the-textiles-sector-deeper-reforms\/","title":{"rendered":"On Issues with PLI Scheme in the Textiles Sector \u2013 Deeper reforms"},"content":{"rendered":"

\"PLI<\/p>\n

Source:<\/strong> This post on Issues with PLI Scheme in Textile Sector has been created based on the article \u201cDeeper reforms – PLI alone will not bring in investment\u201d<\/strong> published in \u201cBusiness Standard\u201d<\/strong> on 14th<\/sup> February 2024.<\/p>\n

UPSC Syllabus Topic: <\/strong>GS Paper 3 Indian Economy – Changes in industrial policy and their effects on industrial growth.<\/p>\n

News:<\/strong> The article discusses the issues with the PLI in the Textiles Sector and the underlying reasons behind them.<\/p>\n

Background:<\/strong><\/p>\n

The government has designed several Production-Linked Incentive (PLI) schemes<\/strong> for a subset of sectors that the government believes are relevant for India\u2019s development and economic security.<\/p>\n

However, the growth of private investment in some of the sectors \u2014 including textiles, IT hardware, and specialty steel \u2014 has been slower than anticipated. PLI Scheme for Textiles Sector<\/strong><\/p>\n

What are The Issues with the PLI Scheme for Textiles Sector?<\/strong><\/h2>\n

The textiles sector has a huge impact on job creation and livelihoods. However, the PLI scheme hasn\u2019t led to a takeoff in this sector.<\/p>\n

Over Rs. 10,000 crores has been set aside for this programme, which is focused on man-made fibre and garments. Only a small fraction of that money has been disbursed till now.<\/p>\n

Why have Some Countries have Done Well on Textiles and Garments Exports?<\/strong><\/h2>\n
    \n
  1. Solid infrastructure.<\/li>\n
  2. Reliable trade policy with low tariffs on inputs.<\/li>\n
  3. An employable workforce.<\/li>\n
  4. Investor-friendly regulations.<\/li>\n<\/ol>\n

    Where Does India Stand on These Parameters?<\/strong><\/h2>\n

    The government has worked hard on building infrastructure and, to an extent, on easing regulations. However, the following areas still need to be addressed:<\/p>\n

      \n
    1. Trade policy has been noticeably unpredictable.<\/li>\n
    2. Workforce development has not happened as desired.<\/li>\n
    3. Lack of judicial or administrative reform that provides business with confidence that regulations will be fairly enforced.<\/li>\n<\/ol>\n

      This has led to few takers for the money on offer under the PLI Scheme.<\/p>\n

       <\/p>\n

      Read More UPSC Topics-<\/strong><\/h2>\n\n\n\n\n
      \n

      A new method for sodium catalyzed synthesis of carbon nanotubes<\/a><\/h4>\n<\/td>\n<\/tr>\n

      \n

      IIT Madras Zanzibar<\/a><\/h4>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      <\/h4>\n

      What Should be Done?<\/strong><\/h2>\n

      1) Engaging with Stakeholders: <\/strong>The government should engage actively with the concerns of potential investors in each of these underperforming sectors.<\/p>\n

      2) Need for Reforms: <\/strong>It should be realized that the problem is not the exact parameters of the PLI scheme but the lack of deeper reform in these sectors.<\/p>\n

      According to the author, there is a need for creating business-friendly conditions for labor-intensive export growth.<\/p>\n

      Question for practice:<\/strong><\/p>\n

      What are the areas India needs to work on in order to do well in the textiles and garments exports?<\/p>\n","protected":false},"excerpt":{"rendered":"

      Source: This post on Issues with PLI Scheme in Textile Sector has been created based on the article \u201cDeeper reforms – PLI alone will not bring in investment\u201d published in \u201cBusiness Standard\u201d on 14th February 2024. UPSC Syllabus Topic: GS Paper 3 Indian Economy – Changes in industrial policy and their effects on industrial growth.… Continue reading On Issues with PLI Scheme in the Textiles Sector \u2013 Deeper reforms<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":282820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,167],"tags":[10503,216,8184],"class_list":["post-282711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-economy-subject","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/02\/PLI-Scheme-in-the-Textiles-Sector.webp?fit=1280%2C1000&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/282711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=282711"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/282711\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/282820"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=282711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=282711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=282711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}