Content

1. PLI Scheme: Powering India’s Industrial Renaissance
2. Pradhan Mantri Matru Vandana Yojana

PLI Scheme: Powering India’s Industrial Renaissance

What is PLI?

• Production Linked Incentive (PLI) Scheme = performance-based incentives given to firms for boosting domestic manufacturing, exports, and job creation.
• Incentives = linked to incremental sales/production, not subsidies upfront.
• Objective = raise India’s manufacturing share of GDP to 25% by 2025–30 (currently ~17%).

Relevance : GS 2(Governance) , GS 3(Manufacturing Sector)

Genesis and Rationale

• India’s economy = services-heavy (50%+ GDP), but manufacturing lagged behind.
• Dependence on imports for electronics, semiconductors, APIs (pharma), and solar weakened strategic autonomy.
• PLI launched in 2020 amid COVID-19 disruptions → to:
  • Revive domestic manufacturing.
  • Reduce import dependency.
  • Strengthen Atmanirbhar Bharat & $5 trillion economy vision.
• Initial launch: mobile phones, electronic components, pharma APIs, medical devices.
• Later expanded → 14 key sectors (electronics, pharma, textiles, auto, semiconductors, food, solar, white goods, etc.).

Scale and Coverage

• Incentive outlay: ₹1.97 lakh crore (over 5 years).
• Applications approved: 806 (as of 2025).
• Committed investments: ₹1.76 lakh crore (Nov 2024).
• Total sales by PLI firms: ₹16.5 lakh crore.
• Jobs created: 12+ lakh (direct + indirect).
• Coverage = 14 strategic sectors → sunrise industries (semiconductors, EVs, solar) + traditional strengths (pharma, textiles).

Sectoral Impact

a. Electronics & Mobile Manufacturing

• Production jumped 146% (₹2.13 lakh cr → ₹5.25 lakh cr, FY21–25).
• India = 2nd largest mobile phone producer globally.
• Attracted global OEMs (Apple, Samsung, Foxconn) + Indian firms.

b. Automobiles & EVs

• Investment committed: ₹67,690 cr; invested: ₹14,043 cr.
• Incentives cover 19 categories of EVs & 103 auto-tech components.
• Linked to FAME scheme → EV ecosystem boost.

c. Pharmaceuticals

• Shift from API import dependence to export surplus (₹2,280 cr FY25).
• Pharma sales under PLI (3 yrs): ₹2.66 lakh cr, exports: ₹1.7 lakh cr.
• Domestic value addition: 83.7%.

d. Food Processing

• 171 projects approved; investments: ₹8,910 cr.
• Links with PM-FME & PMKSY → value-added exports, modern food branding.

e. Solar PV Modules

• PLI Tranche I & II: 48 GW domestic capacity planned.
• Investment: ₹48,120 cr, jobs: 38,500.
• Import dependence cut, energy security strengthened.

f. Semiconductors

• 6 projects approved + 4 new fabs (Odisha, Punjab, Andhra Pradesh).
• Incentive under India Semiconductor Mission (ISM).
• Job creation: 2,034 skilled professionals (direct), with multiplier effects.
• Goal = self-reliant semiconductor ecosystem by 2030.

g. Textiles (MMF & Technical Textiles)

• Outlay: ₹10,683 cr.
• Exports up: MMF ₹499 → ₹525 cr; Technical textiles ₹200 → ₹294 cr.
• Linked with RoSCTL, RoDTEP schemes for zero-rated exports.

h. White Goods (ACs & LED Lights)

• Outlay: ₹6,238 cr.
• Local value addition to rise from 20–25% → 75–80% by 2028–29.
• Local manufacturing of compressors, motors, LED chip packaging → reduces imports.

Wider Economic Impact

• Job Creation: 12+ lakh (direct + indirect).
• MSME Ripple Effect: anchor firms create supply chains → new MSME vendors.
• Cluster Development:
  • Display fabs & semiconductor parks → Gujarat.
  • MMF textiles → Surat.
  • Medical devices → Andhra Pradesh, Tamil Nadu.
• Exports Boost: Pharma, electronics, textiles → stronger global footprint.
• FDI Push: India emerging as a China+1 manufacturing hub.

Challenges & Concerns

• Implementation gaps: delays in project execution in some sectors.
• Over-dependence on incentives: risk of industries not sustaining post-PLI.
• Global competitiveness: India must match China, Vietnam, Taiwan in logistics, infrastructure, supply chains.
• Skill shortages: especially in semiconductors, EVs, advanced electronics.
• Budgetary pressure: large incentive outlays require fiscal balance.

Strategic Significance

• Strengthens Atmanirbhar Bharat & resilience in critical supply chains (chips, APIs, solar).
• Aligns with Digital India (electronics, semiconductors), Green India (EVs, solar), Health India (pharma).
• Helps India position as a trusted manufacturing hub amid US-China decoupling.
• Supports $5 trillion economy target and India’s industrial renaissance.

Conclusion

• PLI = more than subsidies → it’s a structural industrial policy tool.
• Demonstrated success in electronics, pharma, solar, textiles, EVs.
• If sustained with infrastructure upgrades, logistics efficiency, skill development, R&D push, India can achieve:
  • Global competitiveness in advanced manufacturing.
  • Resilient domestic supply chains.
  • Inclusive job creation across regions.

Pradhan Mantri Matru Vandana Yojana

Basics

• Launched: 1 January 2017.
• Implementing Ministry: Ministry of Women & Child Development (MWCD).
• Umbrella Scheme: Mission Shakti → under Samarthya sub-scheme for women’s economic empowerment.
• Legal Backing: National Food Security Act (NFSA), 2013 (Section 4 – maternity benefits).
• Type: Conditional cash transfer scheme → to promote rest, nutrition, and institutional delivery.

Relevance : GS 2(Governance , Schemes)

Why Needed?

• High undernutrition burden:
  • 1 in 3 women undernourished.
  • 1 in 2 women anaemic.
• Maternal-child health link: Undernourished mothers → low birth weight babies → lifelong deficits.
• Work pressure: Women often work till late pregnancy and resume soon after delivery → prevents recovery & exclusive breastfeeding.
• Health-seeking behaviour gap: Low institutional deliveries and ANC (Ante-natal Care) in poor households.
• Social dimension: Son preference and declining Sex Ratio at Birth (SRB).

Objectives

• Cash incentive: Partially compensate wage loss → encourage rest pre & post-delivery.
• Health behaviour: Promote ANC check-ups, institutional delivery, exclusive breastfeeding.
• Gender equity: Promote positive attitude towards girl child (incentives for 2nd child if girl).

Key Features

• PMMVY 1.0 (2017–2021): ₹5,000 cash incentive for first living child.
• PMMVY 2.0 (April 2022 onwards):
  • ₹5,000 for first child.
  • ₹6,000 for second child if girl → incentive for improving SRB.
  • Linked with Janani Suraksha Yojana (JSY) → ~₹6,000 total maternity benefit package.
• Target group: Pregnant Women & Lactating Mothers (PW&LM), mainly disadvantaged households.
• Mode of transfer: DBT into Aadhaar-linked bank/post office accounts.

Eligibility & Enrolment

• Beneficiaries: Pregnant women & lactating mothers (except Govt employees).
• Required documents: Mother & Child Protection (MCP) Card + ID + eligibility proof (e.g., BPL card).
• Enrolment modes:
  • PMMVY Portal (https://pmmvy.wcd.gov.in).
  • UMANG platform.
  • Field-level workers: Anganwadi/ASHA via PMMVY App.

Monitoring, Reporting, and Evaluation (Digital Reforms)

• PMMVYSoft (launched March 2023) – end-to-end IT platform for real-time monitoring.
• Real-Time Authentication:
  • Aadhaar-based verification (UIDAI + NPCI).
  • Biometric (facial recognition) at enrolment → prevents duplication.
• Direct Benefit Transfer (DBT): Seamless transfer to Aadhaar-seeded accounts.
• Transparency & Grievance Redressal:
  • Toll-free multilingual helpline (14408).
  • SMS alerts (12 languages) at each stage (registration → approval → payment).
  • Online grievance module integrated into portal.
• Digital Reporting: Paperless enrolment + mobile app reporting at Anganwadi level.
• Training & Awareness: State-level workshops, YouTube tutorials, IEC campaigns.
• Performance & Impact (till 2025)
• Coverage: Over 3 crore women beneficiaries since 2017.
• Financial transfers: ₹5,000–6,000 per beneficiary → reduced financial stress.
• Health impact:
  • Boosted ANC check-ups & institutional deliveries.
  • Encouraged exclusive breastfeeding for 6 months.
• Gender impact: PMMVY 2.0 incentivizing girl child births → supports Beti Bachao, Beti Padhao.
• Digital governance: PMMVYSoft improved efficiency, transparency, and fraud prevention.

Challenges & Criticisms

• Limited coverage: Restricted to first child (now 2nd if girl); excludes many mothers.
• Low awareness: Many rural women unaware of scheme or find procedures complex.
• Delayed payments: Despite DBT, fund transfer delays reported in some states.
• Wage loss compensation inadequate: ₹5,000–6,000 far below actual wage loss (~₹15,000–20,000 during maternity).
• State capacity gaps: Dependence on Anganwadi/ASHA workers, who are already overburdened.

Strategic Significance

• Strengthens women-led development under Mission Shakti.
• Supports nutrition and health goals under POSHAN Abhiyaan.
• Contributes to SDG 3 (Health), SDG 5 (Gender Equality), SDG 2 (Zero Hunger).
• Acts as a social security net for poor mothers.
• Links with NFSA 2013 → statutory entitlement dimension.

Conclusion

• PMMVY addresses the intergenerational cycle of malnutrition, ensuring healthier mothers and children.
• With digital reforms (PMMVYSoft, DBT), the scheme has become transparent, scalable, and accountable.
• Yet, to fully empower mothers, coverage expansion, higher benefit amount, and stronger awareness drives are needed.
• PMMVY is not just a cash transfer scheme but a public health and gender equity intervention, shaping future generations.