India has over the years offered many incentives to attract manufacturing investment. India's new Production Linked Incentive (PLI) Scheme, aimed to reduce import dependence and promote local manufacturing, helped lure three of Apple's Taiwanese original equipment manufacturers - Foxconn Hon Hai, Wistron and Pegatron. Like Apple, about 70 firms have shown interest in availing the PLI Scheme to set up manufacturing facilities in three key sectors: mobile and electronic components; pharma-APIs (active pharmaceutical ingredients); KSM (key starting materials) and medical devices. But, can a purely demand-driven scheme (incentive is linked to incremental production and production is linked to demand) make a difference when demand and growth continue to lag in a pandemic-hit world? Watch the video to know.
Also Read: Steel makers want PLI benefits to be extended beyond 5 years