New Delhi. Under the policy of Prime Minister Narendra Modi, efforts to give India the top position in global manufacturing are beginning to irritate foreign countries. Recently, America and China have objected to India’s domestic production promotion programs, but experts consider it to be an illusion of double standards.
Objective of Production Incentive Scheme
India launched the Production-Linked Incentive Scheme (PLI) in 2020, which aims to strengthen industries and increase employment in the country. The scheme is applicable in 14 major sectors like electronics, solar panels, pharma and medical devices. Under this, financial help is given to companies so that domestic products can compete with global standards.
Controversy and international reaction
America has imposed heavy duty on Indian solar panels regarding PLI scheme and China has filed a complaint in WTO. He says that India’s programs are harmful for foreign companies. But meanwhile, America and China are themselves giving subsidies to their industries on a large scale, which makes their argument seem contradictory.
India’s strategy
India has made it clear that its plans are in accordance with WTO rules. The government believes that this step is necessary for the country’s industries to survive in international competition. By increasing production and investing in technological innovation, India will become economically stronger and employment will also increase.
Economic compulsion and goals
India wants to increase the contribution of manufacturing in GDP from 17% to 25%. According to experts, this target is difficult without supporting domestic industries. PLI and related policies will improve India’s production capacity and attract global investment.
It is clear from this process that India’s rapidly growing economic power is being seen not only domestically but also on the international stage, and countries like America and China are alert to its impact.
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