The government has tasked IIM Ahmedabad with analyzing why Production-Linked Incentive (PLI) schemes have not delivered expected results. The study will identify structural gaps, assess industry participation, and recommend corrective measures to ensure the schemes achieve their goal of boosting manufacturing and exports.
Launched to strengthen India’s manufacturing base and attract global investment, PLI schemes have faced challenges in execution. With limited uptake in certain sectors, the government is seeking expert insights from IIM Ahmedabad to realign the program with industry needs.
Why PLI Schemes Fell Short
Despite offering financial incentives, several sectors reported low participation due to complex eligibility criteria, delayed disbursements, and global supply chain disruptions. Smaller firms also struggled to meet scale requirements, limiting the scheme’s inclusivity.
Role Of IIM Ahmedabad
IIM Ahmedabad will conduct a comprehensive study across industries, evaluating the effectiveness of incentives and identifying bottlenecks. The institute will recommend policy adjustments to improve accessibility, streamline processes, and enhance competitiveness.
Future Outlook
The findings are expected to guide the government in restructuring PLI schemes, ensuring they contribute meaningfully to India’s vision of becoming a global manufacturing hub.
Key Highlights
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IIM Ahmedabad to study PLI scheme shortfalls
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Focus on structural gaps and industry participation
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Challenges include complex eligibility and low uptake
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Recommendations to improve accessibility and competitiveness
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Government aims to realign schemes with manufacturing goals
Sources: Economic Times, Business Standard, Mint