PLI scheme with a return for the government

Despite the massive opportunity cost of the PLI scheme, there is considerable enthusiasm amongst the proponents of the scheme

The government’s ambitious production-linked incentive (PLI) scheme is to overcome the disadvantage of high costs in the country and to encourage production on a very large scale in some selected industries. The scheme aims to reduce costs per unit of output, and help not just the economy but the country more generally. However, there are concerns.

As we know, the corporate sector has been given several benefits already. The corporate tax rates have been cut substantially, the real interest costs have been kept at very low levels, the customs duties have been raised significantly, and the price of dollar has