PLI Scheme

INDEX OF INDUSTRIAL PRODUCTION : TRENDS, CHALLENGES, & POLICY RESPONSE

India’s Index of Industrial Production (IIP) slipped to a three-month low of 4% in September 2025, reflecting slow growth in mining, primary goods, and consumer non-durables sectors. While consumer durables and manufacturing saw improvement due to GST reforms and festival demand, the overall industrial activity in the first half of FY 2025-26 was the slowest in five years. Government measures like GST rate cuts, PLI schemes, MSME credit support, and infrastructure development aim to revive growth. A holistic approach involving investment promotion, modernization, skill development, and policy stability is critical to sustain industrial growth and boost economic resilience.

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GST CUTS & ADVANTAGES ON EXPORTS

India is taking several steps to boost exports, including GST rate cuts, Production-Linked Incentive (PLI) schemes, and trade infrastructure upgrades. These measures aim to make Indian goods more competitive globally, diversify export markets, and promote sustainable, value-added growth in line with international standards.

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PRODUCTION-LINKED INCENTIVE (PLI) SCHEME: FEATURES, SUCCESS, CHALLENGES, WAY FORWARD

The Production-Linked Incentive (PLI) scheme is a strategic economic plan aiming to transform India into a global manufacturing hub. It encourages large-scale investment, boosts exports, and creates jobs. Despite facing implementation challenges, its sectoral approach and performance-based design are crucial for its potential success.

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