From Licence Raj To PLI: How India Shifted From Punishment To Production, Says PM Modi

Prime Minister Narendra Modi on Friday said India had moved from the ‘Production Linked Punishment’ approach of the Licence Raj era to a model that incentivises higher production through the Production-Linked Incentive (PLI) scheme.

Addressing a media event in the national capital, PM Modi said the PLI scheme had attracted ₹2.5 lakh crore in investment and generated ₹22 lakh crore worth of production and sales. The scheme has contributed to ₹15 lakh crore in exports and created more than 14 lakh jobs, he further added.

PM Modi said the figures reflected a broader shift in the government’s approach towards businesses and manufacturing.

“Instead of imposing restrictions, the Union government was focusing on creating an environment that encourages companies to expand manufacturing, investment and employment,” he noted.

Prime Minister Modi said the policy shift aimed to create conditions that encourage businesses to scale up production, invest and generate employment. He further highlighted the uncertain global environment, saying countries were increasingly weaponising resources and growing distrust was shaping international relations.

Against this backdrop, PM Modi said India was emerging as ‘the light at the end of this tunnel’ and a bright spot for growth and hope.

“IMF predicts India to continue to lead as the world’s fastest-growing economy, and India is leading all efforts to make that happen,” PM Modi added.

The Prime Minister said India’s future could not be built in isolation and stressed the need for the country to work with the world amid ongoing global upheavals. He further said India had adopted an approach of ‘leading with all’, underlining the importance of partnerships and cooperation in navigating an increasingly uncertain global economic landscape.

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