UPSC Key: Wang Yi meets Modi, Brain-eating amoeba, and PLI schemes

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: India and its neighbourhood- relations, Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

What’s the ongoing story: Underlining that “stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity”, Prime Minister Narendra Modi said Tuesday he was looking forward to meeting Chinese President Xi Jinping in Tianjin on the sidelines of the Shanghai Cooperation Organisation leaders’ summit on August 31-September 1.

Key Points to Ponder:

— What is the history of India-China relations?

— What are the areas of cooperation and conflict between India and China?

— India-China Border Dispute- Know the background

— What is the Yarlung Tsangpo project? Why does China want this megaproject?

—  What are the specific concerns for India?

— Read about the origin and flow of the Brahmaputra (Yarlung Tsangpo or Zangbo) river.

— Know about the Shanghai Cooperation Organisation.

— Map work: Located Lipulekh Pass, Shipki La Pass and Nathu La Pass on map.

Key Takeaways:

— His remarks came as Delhi and Beijing agreed on resumption of direct flights, border trade, facilitating trade and investments, and at least three border-related new mechanisms, signalling headway made in rebuilding ties after five years of a tense border standoff.

— The two sides agreed to use the border management mechanisms at diplomatic and military levels to carry forward the process of “border management, and discuss de-escalation”, beginning with the principles and modalities, the MEA said.

— In Wang’s meeting with External Affairs Minister S Jaishankar, the MEA said that the two sides had “positive, constructive and forward-looking” discussions on bilateral, regional and international issues of common interest and agreed on the understandings and outcomes/practical steps on people-centric and economic engagement.

— In this context, both sides agreed to “resume direct flight connectivity” between the Chinese mainland and India at the earliest, and finalise an updated Air Services Agreement. They also agreed on the facilitation of visas to tourists, businesses, media and other visitors in both directions.

— Both sides agreed to the re-opening of border trade through the three designated trading points, namely Lipulekh Pass, Shipki La Pass and Nathu La Pass, it said. They also agreed to facilitate trade and investment flows between the two countries through concrete measures.

— Sources said China promised to address three key concerns of India. Wang assured Jaishankar that China is addressing India’s needs of fertilisers, rare earths and tunnel boring machines, sources said.

— The two sides exchanged views on trans-border rivers cooperation and agreed to give full play to the role of India-China Expert Level Mechanism on Trans-border Rivers and keep communication on renewal of the relevant MoUs. The Chinese side agreed to “share hydrological information during emergency situations based on humanitarian considerations”.

— During the discussions, “External Affairs Minister also underlined India’s concerns with regard to the mega dam construction being undertaken by China in the lower reaches of the Yarlung Tsangpo (Brahmaputra river), which will have implications for lower riparian states. The need for utmost transparency in this regard was strongly underlined,” the MEA said.

— They also agreed to support each other in hosting successful diplomatic events – the Chinese side will support India in hosting the 2026 BRICS Summit and the Indian side will support China in hosting the 2027 BRICS Summit.

Do You Know:

— China has formally started the construction of the USD 167.8 billion dam over the Brahmaputra river in Tibet, closer to the Indian border in Arunachal Pradesh.

— Chinese Premier Li Qiang announced the start of the construction of the dam at a ground-breaking ceremony in the lower reaches of the Brahmaputra river, locally known as Yarlung Zangbo, at Nyingchi City, official media reported.

— The hydropower project, regarded as the biggest infrastructure project in the world, raised concerns in the lower riparian countries, India and Bangladesh.

— The Brahmaputra, the lifeline of Assam and Arunachal Pradesh, begins in Tibet as Yarlung Tsangpo and flows into India at Gelling in Arunachal Pradesh. The river, known as Siang in Arunachal Pradesh, is joined by other tributaries in Assam as it runs across the plains before entering Bangladesh, where it is known as Jamuna.

Other Important Articles Covering the same topic:

📍Thaw in China chill: Direct flights, Mansarovar Yatra, easing of visas

📍Why China is building the world’s largest dam on the Tsangpo, how India may be impacted

Previous year UPSC Prelims Question Covering similar theme:

(1) “Belt and Road Initiative” is sometimes mentioned in the news in the context of the affairs of : (UPSC CSE 2016)

(a) African Union

(b) Brazil

(c) European Union

(d) China

Previous year UPSC Mains Question Covering similar theme:

📍‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbour. (UPSC CSE 2017)

📍With respect to the South China sea, maritime territorial disputes and rising tension affirm the need for safeguarding maritime security to ensure freedom of navigation and over flight throughout the region. In this context, discuss the bilateral issues between India and China. (UPSC CSE 2014)

 

EXPLAINED

Connecting restive Xinjiang to Tibet, a new Chinese railway

Syllabus:

Preliminary Examination: Indian and World Geography – Physical, Social, Economic geography of India and the World

Mains Examination: General Studies-I: Salient features of the world’s physical geography

General Studies-III: Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges, basics of cyber security; money-laundering and its prevention.

What’s the ongoing story: Earlier this month, China established the Xinjiang-Xizang Railway Co Ltd, which state media described as a “significant step in the development of one of China’s most advanced transport projects”.

Key Points to Ponder:

— What do you understand about Sinicisation?

— Why are infrastructure projects by the Chinese government in border areas a security concern for India?

— What are the other infrastructure projects started by China in the border areas that could impact India?

— What is the status of Muslim Uyghurs and Buddhist Tibetans in China?

— What is China’s ‘Go West’ strategy?

—  Railways which extend to many far-flung regions, facilitate the large-scale mobilisation of Chinese troops and movement of defence equipment. How is it a concern for India?

Key Takeaways:

— The planned railway is important because it will connect two historically restive Chinese border regions adjoining each other — the Xinjiang Uyghur Autonomous Region in the northwest, and Tibet, officially Xizang Autonomous Region, in the south of the country.

— Both autonomous regions are large, have unique demographics, and harsh terrain and climatic conditions that make the construction of infrastructure projects challenging.

— Increasing access inside these regions, however, has been an important Chinese policy goal in recent decades. The proposed line will run close to the Line of Actual Control (LAC).

— The plan to connect Xinjiang with Tibet has been mentioned in Chinese official documents for years, and is part of China’s policy to boost rail infrastructure in the region.

— The Xinjiang-Xizang line will run “from Hotan in northwest China’s Xinjiang Uygur autonomous region to Shigatse and Lhasa in Xizang”, and will be “part of China’s five planned railway corridors into Xizang”, a report in China Daily said.

— The project has multiple aims, from facilitating the movement of soldiers to harnessing untapped economic potential in these regions.

— Desai pointed out that the railways, which now extend to many far-flung regions, facilitate the large-scale mobilisation of troops and movement of defence equipment. This military objective is important in the desert-like parts of Xinjiang, where the conventional economic incentive for investment is not strong.

— The minority Muslim Uyghurs and Buddhist Tibetans have long been subjected to an official policy of “Sinicisation”, or a centering of the cultural practices of the majority ethnic Han Chinese.

— The state has typically employed a carrot-and-stick approach towards these populations, which has ensured that no major protests or uprising-like incidents have occurred in more than a decade and a half, Desai said.

— These infra projects picked up steady pace about two decades ago. “China started looking towards its western region with a “Go West” strategy in 2000. They identified 12 provinces for attention, including these two (Xinjiang and Tibet),” Desai said.

— The new railway could pass through Aksai Chin. Though lagging behind China, India has made an infrastructure push of its own over the last several years, including after the 2020 Galwan clash.

— In 2023, Defence Minister Rajnath Singh inaugurated 90 border infrastructure projects, from a tunnel in Arunachal Pradesh to a military airfield in Ladakh.

Do You Know:

— Xinjiang is technically an autonomous region within China — its largest region, rich in minerals, and sharing borders with eight countries, including India, Pakistan, Russia and Afghanistan.

— The Uighurs are Muslim, they don’t speak Mandarin as their native language, and have an ethnicity and culture that is different from that of mainland China. They are concentrated in the Xinjiang province.

— Last month, China formally began construction of a massive dam on the Brahmaputra river close to the border with Arunachal Pradesh at a ceremony that was attended by Premier Li Qiang.

— The dam on the Yarlung Zangbo (or Tsangpo), as the Brahmaputra is known in Tibet, is being built at the “Great Bend”, where the river makes a U-turn in Medog county before entering India at Gelling in Arunachal Pradesh. The river is called Siang in Arunachal Pradesh.

— India issued no official reaction after the July 19 ceremony. But New Delhi has said it is monitoring Chinese infrastructure interventions on the river.

— In January, Ministry of External Affairs spokesperson Randhir Jaiswal had said: “As a lower riparian state with established user rights to the waters of the river, we have consistently expressed…our views and concerns to the Chinese side over mega projects on rivers in their territory.

Other Important Articles Covering the same topic:

📍Explained: Why has China put Uighur Muslims in camps, and what happens inside?

📍Explained: China’s mega dam on Brahmaputra & concerns in India

UPSC Prelims Question Covering similar theme:

(2) Recently, the city of Shigatse was in the news. In which country is it located?

(a) Eritrea

(b) China

(c) Thailand

(d) Timor-Leste

Brain-eating amoeba

Syllabus:

Preliminary Examination: Current events of national importance.

Mains Examination: General Studies-II, III: Health and diseases, Science.

What’s the ongoing story: Three cases of the rare primary amoebic meningoencephalitis (PAM) have been reported in Kerala in recent days, leading to the death of a nine-year-old and infecting a three-month-old baby. PAM is a rare brain infection caused by Naegleria fowleri, also called ‘brain-eating amoeba’.

Key Points to Ponder:

— What is primary amoebic meningoencephalitis (PAM)?

— Read about the Naegleria fowleri.

— In which season is PAM more likely to occur?

— How does Naegleria fowleri infect people?

— Is PAM communicable?

— Is there any treatment for primary amoebic meningoencephalitis?

— Read about the acute encephalitis syndrome (AES).

Key Takeaways:

— The first case of PAM in India was reported in 1971, and the first case in Kerala was reported in 2016. From 2016 to 2023, the state had only eight cases. Last year, Kerala had 36 cases and nine deaths. Here is what to know about the disease and how the amoeba infects people.

— PAM is caused by Naegleria fowleri, a free-living amoeba or a single-celled living organism. It lives in warm, fresh water and soil around the world, and infects people when it enters the body through the nose. Higher temperatures of up to 115°F (46°C) are conducive to its growth, and it can survive for short periods in warm environments.

— The amoeba can be found in warm freshwater, such as lakes and rivers, swimming pools, splash pads, surf parks, or other recreational venues that are poorly maintained or minimally chlorinated.

— Naegleria fowleri enters the body through the nose, usually when people are swimming. It then travels up to the brain, where it destroys the brain tissue and causes swelling.

— Notably, people cannot get infected with Naegleria fowleri from drinking water contaminated with the amoeba. PAM is also non-communicable.

— In the initial stage, the symptoms include headache, fever, nausea and vomiting. Later on, the patient may have a stiff neck and experience confusion, seizures, hallucinations and slip into a state of coma.

— As earlier reported, scientists haven’t been able to identify any effective treatments for the disease yet. At present, doctors treat it with a combination of drugs, including amphotericin B, azithromycin, fluconazole, rifampin, miltefosine, and dexamethasone.

— One of the reasons for the spike in cases in Kerala has been increased testing for acute encephalitis syndrome (AES) – a condition that can be caused by various diseases, including PAM – as well as other factors such as climate change and environmental pollution.

Do You Know:

— According to the US Centers for Disease Control and Prevention (CDC), with the rising global temperatures, the chances of getting Naegleria fowleri infection will go up as the amoeba mainly thrives in warm freshwater bodies. The organism best grows in high temperatures up to 46°C and sometimes can survive at even higher temperatures.

Other Important Articles Covering the same topic:

📍Knowledge nugget of the day: Brain-eating amoeba

📍How common is primary amoebic meningoencephalitis, and does it occur more during the monsoon season?

UPSC Prelims Practice Question Covering similar theme:

(3) With reference to the primary amoebic meningoencephalitis (PAM), consider the following statements:

1. PAM is a rare brain infection that is caused by Naegleria fowleri.

2. Naegleria fowleri is a single-celled living organism.

3. Naegleria fowleri lives in warm, fresh water and soil around the world,

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

ECI’s control over officials 

Syllabus:

Preliminary Examination: Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issuesortance.

Main Examination: General Studies-II: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies

What’s the ongoing story: The Election Commission of India (ECI) is once again sparring with a state government — this time West Bengal — over whether its officers can be disciplined. The state has refused to act against four officials accused of tampering with the electoral roll, saying that no election has been announced, and the Model Code of Conduct does not apply at this time.

Key Points to Ponder:

— What are the constitutional provisions related to the Election Commission of India?

— What is the Model Code of Conduct?

— Know about the Representation of the People Acts of 1950 and 1951.

— What is the role and function of the Election Commission?

— How did the constitution provide for the independence of constitutional bodies like the Election Commission?

— What are the reasons behind the tussle between the Election Commission and state governments over disciplinary control of officers?

— Examine the role of the judiciary in ensuring the independence of the Election Commission.

— Read about T N Seshan.

Key Takeaways:

— Questions on the role and powers of the Election Commission were considered by the Constituent Assembly. On June 15, 1949, Dr B R Ambedkar, chairman of the drafting committee, told members that the Chief Election Commissioner must enjoy the same protection as a judge of the Supreme Court so that “all matters relating to elections should be outside the control of the Executive Government of the day”

— The question of staffing was also discussed. Dr Ambedkar opposed the creation of a parallel bureaucracy for the Commission. He cautioned that “to allow the Election Commission to have an independent machinery to carry on all the work… would be really duplicating the machinery and creating unnecessary administrative expense which could be easily avoided for the simple reason… that the work of the Electoral Commission may be at times heavy and at other times it may have no work”.

— Instead, Ambedkar argued, the Commission could “borrow [officials] from the provincial governments” — and while on deputation, those officials would be “responsible to the Commission and not to the Executive Government”.

— In short, the framers of the Constitution imagined an Election Commission without its own permanent staff, but with authority over officers temporarily placed at its disposal.

— In 1988, nearly four decades later, however, Parliament gave the intent of the Constituent Assembly legal force. Both the Representation of the People Acts of 1950 and 1951 were amended to make officials on election duty formally subject to the Commission’s control.

— Section 13CC of the amended 1950 Act said that Chief Electoral Officers, District Election Officers, Electoral Registration Officers, and others working on electoral rolls “shall be deemed to be on deputation to the Election Commission”, and would be, during that period, subject to its “control, superintendence and discipline”.

—- Section 28A of the amended 1951 Act applied the same principle to the returning officers, the presiding and polling officers, and to even police personnel designated for election duty, covering the period from the notification of the election to the declaration of the result.

— Yet even with the law on its side, the Commission’s tussles with governments did not end. The sharpest confrontation came during the tenure of T N Seshan, the famously combative Chief Election Commissioner (1990-96).

— In 2000, the settlement recorded by the court spelled out the Commission’s powers. It could suspend officers for dereliction of duty, substitute them, and return them to their cadres with a conduct report. It could recommend disciplinary action to the competent authority, which would be bound to act within six months and inform the ECI.

— The Centre agreed to advise states to follow the same framework. On November 7, 2000, the Department of Personnel and Training issued an Office Memorandum, followed by a letter to all states and Union Territories, directing compliance. For the first time, the ECI’s disciplinary powers were formally detailed on paper.

— As the current clash with West Bengal shows however, the 2000 settlement has not succeeded in putting an end to the friction.

— Both the Commission and the Centre have had to repeat the terms of the settlement over the years — since states have sometimes refused to act on the directives issued by the ECI, or have accepted explanations offered by officers instead of enforcing disciplinary action.

Do You Know:

— The Election Commission of India (ECI) is a permanent, independent, and constitutional authority responsible for conducting free and fair elections in the Union and the States of India.

— The ECI is empowered to supervise, oversee, and manage elections to Parliament, state legislatures, and the offices of President and Vice President of India. Since the ECI does not oversee elections to state-level urban bodies like municipalities and panchayats, there is a separate State Election Commission.

Other Important Articles Covering the same topic:

📍Election Commission of India: Composition, powers and functions

📍Election Commission of India is one of the greatest gifts of the Constitution

Previous year UPSC Prelims Question Covering similar theme:

(4) Consider the following statements: (UPSC CSE 2017)

1. The Election Commission of India is a five-member body.

2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.

3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

Previous year UPSC Mains Question Covering similar theme:

Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (UPSC CSE 2022)

 

GOVT & POLITICS

What is recourse if Governor keeps Bills pending, asks Supreme Court

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-I:

What’s the ongoing story: Hearing the reference made by President Droupadi Murmu, a five-judge Constitution bench of the Supreme Court on Tuesday sought to know “what is the constitutionally permissible recourse for a Constitutional Court” in situations where the Governor keeps Bills pending.

Key Points to Ponder:

— Know about the Supreme Court judgement on Tamil Nadu governor case

— What provision in the constitution provides the power to the President to refer any case to the Supreme Court?

— Is the judgement of the Supreme Court on referred cases binding on the President?

— What are the provisions related to Article 200 and Article 201?

— The court cannot set such timelines as it would amount to “taking over the functions of the Governor.” — what do you understand by this?

— What is Article 143?

— What is the advisory jurisdiction of the Supreme Court?

— What is the key difference between Governor and President?

Key Takeaways:

— The bench, headed by Chief Justice of India B R Gavai, also asked what was wrong if the President seeks views, through a presidential reference, on whether such timelines can be imposed on Governors and the President.

— On April 8, while hearing the case related to pending Bills in Tamil Nadu, the two-Judge bench had set a timeline for Governors to act on pending Bills, and, for the first time, prescribed that the President should take a decision on the Bills reserved for consideration by the Governor within three months from the date on which such reference is received.

— In a reference to the Supreme Court in May, President Murmu posed 14 crucial questions on the verdict.

— Attorney General R Venkataramani argued that Articles 200 and 201, which deal with the powers of the Governor and President to give assent to Bills, are also part of the basic structure of the Constitution and the court’s decision to fix timelines “dilutes” their power to reject a Bill.

— Venkataramani contended that the court cannot set such timelines as it would amount to “taking over the functions of the Governor.” He submitted that prescribing timelines which have not been imposed by the Constitution would amount to a “constitutional amendment”.

— Venkataramani, however, said the verdict would act as a precedent and could be applied to matters with similar facts.

— At the outset, the CJI said the bench would first examine objections to the maintainability of the reference under Article 143 of the Constitution.

— Justice Kant said the court was sitting in advisory jurisdiction and would lay down the correct statement of law. He said it will not, however, amount to overruling the judgment.

— Mehta said a seven-judge Supreme Court bench had held that the court, under Article 143(1), does have the power to overrule a previous view delivered by it. “View can be overruled, but not a decision,” the CJI said.

Do You Know:

— The key difference between the governor and the president is in the manner of appointment and removal — whereas the president is elected by the elected representatives of the country, the governor is appointed by the Union government alone. Whereas the president can only be removed by way of impeachment, the governor can be removed from office at the pleasure of the Union government.

— Article 200 specifically deals with the issue of granting assent to Bills. When a Bill passed by the legislature of a state is presented to the Governor, the Governor has four options: (1) grant assent to the Bill; (2) withhold assent to the Bills; (3) return the Bills for reconsideration; or (4) reserve the Bill for the consideration of the President.

— Under Article 201, the President has two options once a Bill is reserved by the Governor for his/her consideration – grant or withhold assent.

— Article 142 provides a unique power to the Supreme Court, to do “complete justice” between the parties, where, at times, the law or statute may not provide a remedy. In those situations, the court can extend itself to put an end to a dispute in a manner that would fit the facts of the case.

— Under Article 143(1) of the Constitution, the President may refer a “question of law or fact” to the Supreme Court for its opinion. The opinion, unlike a ruling, is not binding.

— A question under Article 143 may be referred if it “has arisen, or is likely to arise”, and “which is of such a nature and of such public importance that it is expedient to obtain the opinion of the Supreme Court”.

— Article 145(3) requires any such reference to be heard by five judges, after which the SC returns the reference to the President with the majority opinion.

— Under the Constitution, the President acts on the aid and advice of the Cabinet. The advisory jurisdiction allows her the means to seek independent advice to act on certain constitutional matters. It is a power that the President has invoked on at least 15 occasions since 1950.

Other Important Articles Covering the same topic:

📍In a first, Supreme Court sets 3-month deadline for President to decide on Bills referred by Governor

📍SC Verdict on TN Governor — Why it matters for UPSC

Previous year UPSC Prelims Question Covering similar theme:

(5) With reference to the Constitution of India, prohibitions or limitations or provisions contained in ordinary laws cannot act as prohibitions or limitations on the constitutional powers under Article 142. It could mean which one of the following? (2019)

(a) The decisions taken by the Election Commission of India while discharging its duties cannot be challenged in any court of law.

(b) The Supreme Court of India is not constrained in the exercise of its powers by laws made by the Parliament.

(c) In the event of grave financial crisis in the country, the President of India can declare Financial Emergency without the counsel from the Cabinet.

(d) State Legislatures cannot make laws on certain matters without the concurrence of Union Legislature

 

ECONOMY

Sunrise sectors battery, solar modules manufacturing lag in PLI node; specialty steel & food products lead

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-III: ndian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment; Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management

What’s the ongoing story: The government has cleared 806 applications under the Production Linked Incentive (PLI) schemes that began in 2021 and incentive amounts to the tune of Rs 21,689 crore have been disbursed, resulting in investments worth Rs 1.90 lakh crore in the 14 PLI sectors, the Ministry of Commerce and Industry said Tuesday.

Key Points to Ponder:

— What is the objective of PLI schemes?

— What do you understand about sunrise sectors? Which businesses are classified as the sunrise sector?

— PLI schemes are applicable in how many sectors?

— What are the steps taken by the government to push manufacturing?

— What do you know about PLI 2.0?

— What are the challenges faced by manufacturing sectors in India?

— Understand the challenges faced by sunrise sectors like Advanced Chemistry Cell (ACC) batteries and high-efficiency solar PV modules, in light of supply chain monopoly of China in critical minerals

Key Takeaways:

— Data shared by the Ministry in a reply to a parliamentary question showed that applications from traditionally strong sectors such as food products and specialty steel saw the highest number of clearances,

— while sunrise sectors that require larger investments, such as Advanced Chemistry Cell (ACC) batteries and high-efficiency solar PV modules, saw the least number of application clearances.

— Explaining the low disbursement figures, a government official told The Indian Express that the disbursements are low as several companies have not been able to meet the targets.

— The official pointed out that “pricing pressure” in China is one of the key reasons why approvals in the ACC battery and high-efficiency solar PV modules segments are low.

— China has emerged as a leader in the EV sector and also controls much of the critical minerals crucial for the automobile industry.

— While the government has cleared only four battery manufacturing applications, the comparable number in the solar module sector stands at 14.

— On the contrary, sectors where India has been stronger have seen higher clearances. The government has cleared as many as 182 applications in the food products category, 109 in the specialty steel sector and 95 in the automobiles & auto components sector.

— The Ministry said that PLI in the pharmaceuticals sector has also begun boosting production, resulting in cumulative sales of Rs 2.66 lakh crore, out of which exports worth Rs 1.70 lakh crore have been achieved in the first three years of the scheme.

Do You Know:

— Since its launch in April 2020, the PLI scheme covers 14 sectors as of now. It has helped India achieve scale in manufacturing by attracting OEMs (original equipment manufacturers) as well as contract manufacturers in designated sectors.

— It has also contributed to limited value addition is segments such as surface mounting and PCB (printed circuit board) assembly, product testing, and packaging.

— With the Production-Linked Incentive (PLI) scheme gaining traction in its first phase, the government is considering if incentives should be linked to metrics beyond incremental sales such as domestic value addition and incremental exports. (for PLI 2.0)

— In terms of job creation though, the PLI scheme has been a mixed bag so far, with data obtained under the Right to Information Act by The Indian Express revealing that sectors such as mobile phones, food processing and pharma have done relatively well; sectors such as auto, IT hardware and specialty steel are somewhat better placed; while some others such as textiles and advanced chemical cells well below target.

— The idea with PLI schemes – the support for which ranges from three to seven years – is also to get a certain critical mass in a sector, so that when incentives are withdrawn, the sector remains competitive on an export parity basis. Critics, however, argue that the scheme is akin to subsidisation and may not result in competitiveness, especially once the incentives are over.

Other Important Articles Covering the same topic:

📍PLI review 5 years on | On Govt table: PLI 2.0, what next to push manufacturing

📍Why some PLI schemes are in the slow lane; what govt is doing about it

Previous year UPSC Mains Question Covering similar theme:

📍Account for the failure of manufacturing sector in achieving the goal of labour-intensive exports rather than capital-intensive exports. Suggest measures for more labour-intensive rather than capital-intensive exports. (UPSC CSE 2017)

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PRELIMS ANSWER KEY

1. (d)  2. (b)  3. (c)   4. (d)  5. (b)

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