PLI Scheme: A Recipe to Boost India’s Food Processing Industry
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Case Code: ECON100 Case Length: 11 Pages Period: 2020-21 Pub Date: 2021 Teaching Note: Available |
Price: Rs.300 Organization : - Industry : - Countries : India Themes: Government & Economy, Government Policies |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background
After independence, India’s economic policies were largely based on socialistic principles of economic growth with the focus on self-reliance, social justice, and alleviation of poverty. The government and the then Planning Commission focused primarily on making the country self-reliant. India’s private sector, which was in its infancy, did not get any support from the government. As the nation needed to be industrialized rapidly, public sector enterprises came into being with huge investments. Within a few decades, however, the inefficiency of the public sector was exposed and most of them made losses in their operations. Since 1978, China and the Southeast Asian nations had opened up more and more sectors to foreign direct investments. Within a decade, East and Southeast Asian nations improved their overall investment environment and rushed ahead of India in attracting investments and on almost every economic parameter. Even within the country, Indian products became costlier than those imported from China...
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