ET WLF: PM Modi recalls 'PLP' era 'that once held India back'

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Key points

• Prime Minister Narendra Modi on Friday remarked India had moved from the Licence Raj-era "Production Linked Punishment" model to incentivising production through the PLI scheme.
• PM ModiProduction Linked Incentive (PLI)Indian economyET World Leaders ForumIMFLicence Rajglobal economyeconomic growthgovernment incentives.
• ET World Leaders Forum: PM Modi notes 'production-linked punishment' era once held back Indian industry; pegs India as world's fastest-growing economy.
• "IMF predicts India to continue to lead as the world's fastest growing economy, and India is leading all efforts to make that happen, " Modi remarked.
• Power shift, a déjà vu: Air India could be new CEO's toughest flight yet.

Prime Minister Narendra Modi on Friday remarked India had moved from the Licence Raj-era "Production Linked Punishment" model to incentivising production through the PLI scheme. It he stated has generated ₹2.5 lakh crore in investment, ₹22 lakh crore in production and sales, ₹15 lakh crore in exports and over 14 lakh jobs.

Prime Minister Narendra Modi on Friday remarked India had moved from an era of "Production Linked Punishment" under the "Licence Raj government" to one where the administration incentivises higher production, citing the performance of the production-linked incentive (PLI) scheme as evidence of the country's changing economic approach. Speaking at the ET World Leaders Forum in New Delhi, Modi remarked the world was facing growing uncertainty, with resources being weaponised and distrust becoming the prevailing environment, but India was emerging as "the light at the end of this tunnel" and a bright spot for expansion and hope. "IMF predicts India to continue to lead as the world's fastest growing economy, and India is leading all efforts to make that happen, " Modi remarked.

Notably, the Prime Minister remarked India's future could not be built in isolation, arguing that the country had adopted an approach of "leading with all" against the backdrop of global upheavals. "In the past few years, the world has seen several ups and downs, and these experiences have made one thing clear: a country's future cannot be built in isolation, " Modi remarked. Live Events.

He remarked India was pursuing next-generation reforms throughout policy and governance, with a focus on securing the country's future and improving ease of living. "Reform is not a compulsion for India but its commitment, " Modi remarked. "They are our commitment. They are our conviction." From 'production-linked punishment' to PLI.

Turning to India's industrial policy, Modi drew a contrast between the Licence Raj and the government's current PLI programme, describing the former as a system in which firms could be penalised for exceeding prescribed production limits. "Production linked punishment: PIP-did you hear about this?" Modi remarked, contrasting it with the PLI framework. "PIP and PLI define two different timelines in India." Modi remarked the earlier Licence Raj governments followed what he called a "Production Linked Punishment" model, under which factories producing beyond prescribed limits could face punitive action. "Today's younger generation will be surprised to hear that there was a time in our country when if a firm produced more than the prescribed limit, it was punished. This was the PLP, or Production Linked Punishment, model of the earlier licence raj governments, " he remarked. He further asserted there were instances where factories that climbed production in response to higher demand received notices and were compelled to destroy products rather than sell them in the market. Modi additionally targeted critics of the Produce in India and Atmanirbhar Bharat initiatives, saying those who mocked the campaigns were rooted in the same thinking that had prevailed during the Licence Raj. "Those who make fun of the Make in India and Atmanirbhar Bharat campaigns today are rooted in the same thinking of the past – PLP, or Production Linked Punishment, " he remarked. According to Modi, the earlier approach was driven by a mindset that sought to perpetuate shortages and keep citizens dependent on the administration. "Keeping the citizens of the country in deprivation was their policy. They wanted individuals to stand before them with folded hands and ask for things, " he stated. Modi cites PLI investment, production and jobs.

Modi remarked economic reform must commence with a change in mindset, contrasting the earlier approach of penalising extra production with the current policy of rewarding it. "Every reform begins first with a reform in the way you think – the mental range within which you operate. It begins with reforming this mindset, " he remarked. "Where earlier there was punishment for increasing production, today our administration is giving incentives for increasing production. While more than ₹22 lakh crore worth of production and sales had taken place, and the world is seeing the success of the PLI scheme today." Citing the PLI scheme's performance, Modi remarked it had attracted around ₹2.5 lakh crore in actual investment. "More than Rs 15 lakh crore worth of exports have taken place, and more than 14 lakh direct and indirect jobs have been created, " he remarked. "And I will remind you again, these figures are from just one scheme." Meanwhile, Modi remarked India was focusing on seven sectors, including manufacturing, technology and innovation, and the green and blue economy. He remarked the administration was pursuing reforms in these areas alongside measures in governance and ease of living. "Amidst it all, the world sees India as the light at the end of this tunnel, " Modi remarked, adding that the country was being viewed as a "bright spot for growth and hope." He stated the global environment had become more challenging, with "Resources being weaponised" and "distrust" becoming "the new environment", but India was seeking to advance through an approach centred on cooperation and inclusive expansion. Add Now!

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