Production-linked incentive scheme has emerged as a cornerstone of India’s industrial policy under the Self-reliant India initiative. The overarching objective of the PLI scheme is to augment the capacity, competence, and capabilities of the domestic manufacturing sector. However, the scheme has many design and structural flaws and missing links that could undermine its objective of augmenting domestic manufacturing and making the country a centre of global manufacturing. There is a need
to overhaul its design not only to align it with trade policy but also with the country’s comparative advantage in labour-intensive manufacturing.