AR

ANANYA RANAAIR 60

Question 14GS3GS3

To what extent has the Production Linked Incentive Scheme for the food processing industry facilitated value addition, employment generation, and global competitiveness in India's food processing industry?

Open scan (p.33)

Main Body

Production Linked Incentive PLI scheme is an instrument to reward successive sales in manufacturing, food processing industry etc to establish 'Make In India' goal. Easier 14 sectorsPLIpromotion of indigenous manufacturingrewards for successive sales Progress of PLI for Food Processing Industry: I Facilitating value addition: Achievements: (1a) conversion of various dairy products (1b) AMUL butter in agricultural sector (1c) millets (1d) Mobile phone manufacturing enhanced (1e) setting up of Apple facilities (1f) Electric vehicle manufacturing Challenges: (1) No major value addition (2) Mobile phone assembly is taking precedence over value addition (3) Large foreign components in electric vehicles

II Employment generation: Achievements: (1) Food Processing industry employs about second largest workforce after agriculture (2 to textile sector) (2) loss skilled personnel can be adjusted Challenges: (1) Majority of job creation in informal settings (2) unskilled personnel used become redundant with advent of AT III Global competitiveness: Achievements: (1) Some 'Brand India' products seen exports (2) Contributes to exports (major portion of agricultural exports) (3) Millets Network Initiative to add value to millets - known STHs Challenges: (1) Can't compete with dairy products of nations like Australia & New Zealand (2) Overall visibility is still low Criteria change - Set minimum value addition requirement for rewards Measures required: (1) Criteria change - Set minimum value addition requirement (2) Promote online visibility of value-added products (3) ONDC, e-commerce (4) Provide cold chain storage via PPP

Additional details on achievements and challenges of PLI scheme across sectors

Further analysis of PLI effectiveness across various sectors including employment generation and global competitiveness aspects

Global competitiveness analysis: Achievements include some 'Brand India' products seen exports, contributes to exports as major portion of agricultural exports, and Millets Network Initiative. Challenges include inability to compete with dairy products of nations like Australia and New Zealand, and overall visibility is still low. Measures required include criteria change to set minimum value addition requirement, promote online visibility of value-added products, ONDC and e-commerce platforms, and provide cold chain storage via PPP. Food processing industry is a sunrise sector that can help resolve India's jobless growth paradox.

352 words1 paragraphs

Conclusion

Food processing industry is a sunrise sector that can help resolve India's jobless growth paradox.

15 words

Topper

ANANYA RANA

AIR 60

Subject & Paper

GS3GS3

Topic

Agriculture and Food Security

Food processing

PLI scheme and value addition

Writing Stats

367

Total words

1

Paragraphs

analytical

Tone