VK IAS by Vikas kanukollu (VK)

Forwarded from VK IAS by Vikas kanukollu (VK)

#GovtScheme

✅Gs3-Economic growth- Make in India- production linked subsidy scheme- Understand the broad logic

🔵If india was designing this scheme in 1990- the incentive to produce was enough to propel growth
But India missed that bus and china overtook us.
🔵So we cant replicate the model of 1990 in 2020- we cant afford to incentivise companies that just focus on volume and incentivise them- we need to focus on quality to be really a serious player in world trade
🔵Hence low research and dev= low quality= low price= less growth= less jobs

🎖Formula for High paying  jobs = Economic angle + Social angle

🔴Economic angle = {IPR i.e. R&D + Right incentives(PLI- for Quality , not quantity) + Ease of Doing business( Easing labor laws, tax laws etc)}
🔴Social angle = { Health+Education+ Skills}

⚠️ Update : The PLI scheme has now been extended to various sectors with subsidy being linked to the quantity- The logic remains same but now the ambit of sectors has increased. So the scheme is not confined to any sector.

www.tgoop.com/hinduhighlights/7594

9.0K viewsApr 18, 2021 at 07:39

#GovtScheme

✅Gs3-Economic growth- Make in India- production linked subsidy scheme- Understand the broad logic

🔵If india was designing this scheme in 1990- the incentive to produce was enough to propel growth
But India missed that bus and china overtook us.
🔵So we cant replicate the model of 1990 in 2020- we cant afford to incentivise companies that just focus on volume and incentivise them- we need to focus on quality to be really a serious player in world trade
🔵Hence low research and dev= low quality= low price= less growth= less jobs

🎖Formula for High paying  jobs = Economic angle + Social angle

BY VK IAS by Vikas kanukollu (VK)