JUNE 202319How will the PLI scheme encourage innovation and technological advancements in manufacturing?PLI scheme encourages innovation and technological ad-vancements in manufacturing in the following ways:Adoption of Advanced Manufacturing Technologies: The PLI scheme encourages companies to adopt advanced manufacturing technologies to improve their productivity and quality. These technologies include automation, artificial intelligence, robotics, and the Internet of Things (IoT).·Technology Transfer: The PLI scheme encourages the transfer of technology to India by offering incentives for the production of products that use advanced or emerging tech-nologies. This will lead to the adoption of new technologies by Indian companies and help them become more competitive in the global market.·Cluster-Based Approach: The PLI scheme uses a clus-ter-based approach to incentivize the manufacturing of spe-cific products in specific regions. This approach brings to-gether companies, academia, and research institutions in a specific geographic location to collaborate on R&D activities and share resources. This collaboration will foster innovation and technological advancements in manufacturing. What kind of employment opportunities will the PLI scheme create in the manufacturing sector?Expansion of Existing Manufacturing Facilities: Compani-esthat receive incentives under the PLI scheme are likely to expand their manufacturing facilities to increase production capacity. This could lead to the creation of new jobs in areas such as production, quality control, and logistics.Increased Demand for Skilled Labor: With the growth of the manufacturing sector under the PLI scheme, there is likely to be an increased demand for skilled labor, including engineers, technicians, and other manufacturing profes-sionals. How will the PLI scheme impact the prices of goods produced by the manufacturing industry?The impact of the PLI scheme on the prices of goods produced by the manufacturing industry would depend on several fac-tors, such as the level of competition in the market, the cost savings achieved by manufacturers through the scheme, and the elasticity of demand for the products.The PLI scheme is expected to lead to an increase in do-mestic production of goods, which could lead to greater com-petition among manufacturers. This increased competition could lead to lower prices for consumers as manufacturers try to gain market share. Moreover, the PLI scheme incentiv-izes manufacturers to improve efficiency, reduce costs, and increase productivity, which could result in cost savings for the manufacturers. These cost savings could be passed on to consumers in the form of lower prices.What will be the impact of PLI scheme on the competitiveness of Indian manufacturers vis-a-vis their global counterparts?The impact of the PLI scheme on the competitiveness of Indi-an manufacturers vis-a-vis their global counterparts would depend on several factors, such as the level of competition in the global market, the cost savings achieved by Indian man-ufacturers through the scheme, and the quality of products produced by Indian manufacturers.The PLI scheme is expected to enhance the competi-tiveness of Indian manufacturers by incentivizing them to improve efficiency, reduce costs, and increase productivity. This could lead to lower production costs, which would make Indian manufacturers more competitive in the global market. Additionally, the scheme could help Indian manufacturers en-hance their production capabilities and adopt new technolo-gies, which would also enhance their competitiveness.The global market is highly competitive, and many coun-tries offer similar incentives and support to their manufac-turers. Thus, the impact of the PLI scheme on the competi-tiveness of Indian manufacturers would also depend on how it compares to similar schemes offered by other countries. The PLI scheme encourages the transfer of technology to India by offering incentives for the production of products that use advanced or emerging technologiesThe PLI scheme aims to incentivize companies to manufacture their products in India, which will help reduce India's dependence on imports and boost domestic manufacturing
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