Montek Singh Ahluwalia Suggests PLI Scheme for Farmers Instead of Fertilizer Subsidy
Montek Singh Ahluwalia Suggests PLI Scheme for Farmers Instead of Fertilizer Subsidy
Montek Singh Ahluwalia, the former Deputy Chairman of the Planning Commission, has proposed a shift from fertilizer subsidies to a Production Linked Incentive (PLI) scheme for farmers. He argues that the current subsidy benefits the fertilizer industry more than the farmers and harms soil health. Ahluwalia suggests that direct incentives to farmers would be more beneficial and calls for consultations with farmers, economists, and industry experts to find the best approach.
Ahluwalia also discussed the broader implications of PLI schemes, which aim to boost manufacturing. He praised their success in new industries like mobile manufacturing and semiconductors but criticized their use in traditional sectors like garments. He believes PLIs should focus on industries where India lacks experience, such as chip and battery manufacturing.
He commended the government for attracting major manufacturers like Apple to India and recommended focusing on key new industries to bring in global manufacturers. Ahluwalia emphasized the importance of balancing growth in both manufacturing and services, aligning with former RBI Governor Raghuram Rajan's views.
Ahluwalia's insights call for strategic policymaking to address economic challenges and unlock India's potential.
Doubts Revealed
Montek Singh Ahluwalia
Montek Singh Ahluwalia is an Indian economist and a former Deputy Chairman of the Planning Commission of India. He is known for his work in economic policy and planning.
PLI Scheme
PLI stands for Production Linked Incentive. It is a government scheme that provides financial incentives to companies based on their production levels to encourage manufacturing and boost economic growth.
Fertilizer Subsidy
A fertilizer subsidy is financial support provided by the government to make fertilizers cheaper for farmers. This helps farmers afford fertilizers to grow crops, but it can sometimes lead to overuse and harm the soil.
Soil Health
Soil health refers to the condition of the soil, which affects its ability to support plant growth. Healthy soil is important for growing crops and maintaining the environment.
Raghuram Rajan
Raghuram Rajan is an Indian economist and former Governor of the Reserve Bank of India. He is known for his views on economic growth and policy.
Strategic Policymaking
Strategic policymaking involves creating plans and policies that are carefully thought out to achieve long-term goals and improve a country's economy and society.
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