What are Production Linked Incentive (PLI) schemes?

PLI Schemes: Production Linked Incentives — government pays financial incentives to companies based on incremental production above a base year. Launched to boost domestic manufacturing and reduce import dependence. Total outlay: ~₹1.97 lakh crore across 14 sectors. Key PLI sectors and budgets: Mobile & Electronic Components (₹40,951 cr) — Foxconn, Samsung, Apple suppliers manufacturing in India; Pharmaceuticals (₹15,000 cr) — APIs, bulk drugs; Medical Devices (₹3,420 cr); Automobiles (₹25,938 cr) — EV focus; Advanced Chemistry Batteries (₹18,100 cr); Telecom & Networking (₹12,195 cr); White Goods AC/LED (₹6,238 cr); Food Processing (₹10,900 cr); Textile — MMF apparel, technical textiles (₹10,683 cr); Solar PV modules (₹4,500 cr); Specialty Steel (₹6,322 cr). Success: Mobile phone production rose from ₹18,900 cr (2014-15) to ₹4.1 lakh cr (2023-24); India exports phones to USA, Europe. Semiconductors PLI: India Semiconductor Mission (₹76,000 cr) — first chip fab announced 2024.

What are India's major industrial corridors and what do they aim to achieve?

Industrial Corridors: Planned high-speed connectivity between major cities with industrial clusters along the route. Five approved corridors: (1) Delhi-Mumbai Industrial Corridor (DMIC) — 1,504 km; passes through UP, Haryana, Rajasthan, Gujarat, MP, Maharashtra; Dholera Smart City (Gujarat) as flagship; Japanese investment. (2) Amritsar-Kolkata Industrial Corridor (AKIC) — also called Eastern Dedicated Freight Corridor (EDFC) corridor; UP, Bihar, Jharkhand, WB. (3) Bengaluru-Mumbai Economic Corridor (BMEC). (4) Chennai-Bengaluru Industrial Corridor (CBIC) — TN, KA, AP; includes Chennai-Bengaluru Expressway. (5) Vizag-Chennai Industrial Corridor (VCIC) — AP, TN. Tamil Nadu's key corridor: CBIC and VCIC both pass through TN. Concept: Rail/road spine connects anchor cities; manufacturing clusters of 50-200 sq km developed along spine; smart cities created as nodes. DMIC: Most advanced — Dholera SIR (Special Investment Region) in Gujarat being built; Shendra-Bidkin near Aurangabad, MH operational.

What are the Dedicated Freight Corridors (DFC) and what is their impact?

Dedicated Freight Corridors (DFC): Separate rail tracks exclusively for freight trains — no sharing with passenger trains. Two operational corridors: (1) Eastern DFC (EDFC): Ludhiana (Punjab) → Dankuni (WB), 1,337 km — operational from 2022. Connects Punjab grain belt + coal from Jharkhand/Odisha + ports. (2) Western DFC (WDFC): Rewari (Haryana) → Jawaharlal Nehru Port (Mumbai), 1,506 km — operational from 2022. Key industrial clusters: NCR, Rajasthan, Gujarat, Mumbai port. Benefits: (1) Freight speed doubles — from 25 km/h average to 50-70 km/h. (2) Passenger trains freed on existing tracks — more capacity. (3) Double-stack containers — twice the cargo per train. (4) Reduces logistics cost — currently India's logistics cost is 13-14% of GDP vs 8% for China; DFC aims to reduce to 8-9%. Funded by: Japan (JICA — ₹98,000 crore for EDFC and WDFC). Future corridors: East Coast Corridor (Kharagpur-Vijayawada), Kolkata-Mumbai Corridor.

What are Sagarmala, UDAN and other infrastructure schemes?

Sagarmala Programme (2015): Port-led development strategy. Components: (1) Port Modernisation — capacity enhancement of 12 major ports + 200+ minor ports. (2) Port Connectivity — road/rail to ports; last-mile connectivity. (3) Port-led industrialisation — coastal economic zones near ports. (4) Coastal community development. India's major ports handle 1.4 billion tonnes/year. Chennai Port and Tuticorin (V.O.C. Port) — TN's two major ports. UDAN (Ude Desh ka Aam Nagrik) Scheme (2016): Regional air connectivity. Makes flying affordable for common people. Cap on airfare for UDAN routes (~₹2,500 for 1-hour flight). 1,000+ UDAN routes awarded; 72+ airports connected that previously had no/low service. Tamil Nadu: Tiruchirapalli (Trichy) and Madurai are UDAN airports benefiting significantly. PM Gati Shakti (2021): National Master Plan for multi-modal connectivity — integrates 16 ministries' infrastructure planning on a single digital platform. Connects roads, railways, airports, ports, waterways, pipelines.

Industrial Policy, Make in India & Infrastructure — TNPSC Group 1 Notes

Industrial Policy Evolution

Pre-Liberalisation Era

Industrial Policy Resolution (IPR) 1948:

First industrial policy post-independence
Mixed economy model — public + private sectors
Strategic industries for public sector (weapons, railways, atomic energy)

Industrial Policy Resolution (IPR) 1956:

Mahalanobis model influence (heavy industrialisation)
Schedule A: Only public sector — 17 industries (arms, atomic energy, iron/steel, heavy plant)
Schedule B: Primarily public sector — 12 industries (metals, fertilisers, chemicals)
Schedule C: Private sector with licensing

MRTP Act 1969: Monopolies and Restrictive Trade Practices Act — prevented concentration of economic power; required government approval for large firms to expand

FERA 1973: Foreign Exchange Regulation Act — restricted foreign equity to 40% in Indian companies; many MNCs left India (IBM, Coca-Cola in 1977)

Post-Liberalisation (1991 onwards)

New Industrial Policy 1991 (LPG reforms):

Industrial licensing abolished for most industries (except 6 strategic ones)
Public sector reserved industries reduced from 17 to 8 (now 2: Railways + Atomic Energy)
MRTP Act amended — big companies can expand freely (MRTP Act later replaced by Competition Act 2002)
Foreign investment liberalised

Competition Act 2002: Replaced MRTP Act; Competition Commission of India (CCI) established — prevents anti-competitive practices, mergers that reduce competition

Make in India

Launched: September 25, 2014 (PM Modi, at Vigyan Bhawan, New Delhi)

Three pillars: 1. New sectors: Open defence, railways, insurance to foreign investment 2. New infrastructure: Industrial corridors, industrial parks, smart cities 3. New mindset: Ease of doing business; facilitate, not regulate

Make in India 2.0 (2020) — 27 focus sectors:

Manufacturing (15): Auto/Auto Components, Aviation, Chemicals, Defence & Aerospace, Electronics, Food Processing, Gems & Jewellery, Leather, Machinery, Medical Devices, Metals & Mining, Pharmaceuticals, Renewable Energy, Shipping, Textiles

Services (12): IT & BPM, Tourism, Legal, Accountancy, Consultancy, Audio-Visual, Construction, Wholesale Trade, Environmental Services, Financial Services, Logistics, Education

FDI impact (post-2014): India received $440+ billion FDI inflows (2014-2023) vs ~$250 billion in previous decade

Production Linked Incentive (PLI) Schemes

Concept: Government pays incentive = % of incremental sales above base year; promotes domestic production Total PLI outlay: ~₹1.97 lakh crore (across 14 sectors)

Key Sectors

Sector	Outlay	Key Outcome
Large Scale Electronics/Mobile Phones	₹40,951 cr	Apple, Samsung manufacturing in India; India = 2nd largest phone maker
Automobiles & Auto Components	₹25,938 cr	EV focus; hydrogen fuel cell
Advanced Chemistry Cell Batteries	₹18,100 cr	Battery storage for EVs and grid
Telecom & Networking Products	₹12,195 cr	5G equipment domestic production
Pharmaceuticals	₹15,000 cr	APIs + bulk drugs — reduce China dependence
Food Processing	₹10,900 cr	Ready-to-eat, processed foods
Textile (MMF + Technical)	₹10,683 cr	Man-made fibre, technical textiles
Solar PV Modules	₹4,500 cr	Solar panel manufacturing
Specialty Steel	₹6,322 cr	High-grade steel for defence/auto
White Goods (AC, LED)	₹6,238 cr	Reduce import of consumer electronics

India Semiconductor Mission (2021):

₹76,000 crore incentive package for chip fabs and assembly/test units
First semiconductor fab: Tata Electronics in Dholera, Gujarat — announced 2024; Micron assembly facility in Sanand, Gujarat — first to receive incentive
Strategic goal: Reduce dependence on Taiwan/China for chips

Industrial Corridors

Five Approved Corridors

1. Delhi-Mumbai Industrial Corridor (DMIC)

Answer

Length: 1,504 km; passes through 6 states
Anchor cities: Delhi, Jaipur, Ahmedabad, Mumbai
Flagship: Dholera Special Investment Region (SIR), Gujarat — greenfield smart city
Partners: Japan (JBIC financing); Invest India promotes
Status: Multiple industrial nodes under development

2. Amritsar-Kolkata Industrial Corridor (AKIC)

Answer

Follows Eastern Dedicated Freight Corridor
States: Punjab, Haryana, UP, Bihar, Jharkhand, WB
Connects grain surplus region with coal belt and Kolkata port

3. Bengaluru-Mumbai Economic Corridor (BMEC)

Answer

1,000+ km; passes through Maharashtra and Karnataka
Links Pune-Nashik-Hubballi-Bengaluru industrial cluster

4. Chennai-Bengaluru Industrial Corridor (CBIC)

Answer

States: Tamil Nadu, Karnataka, Andhra Pradesh
Includes Chennai-Bengaluru Expressway
Key for Tamil Nadu: Auto manufacturing, electronics, textile clusters along corridor
Nodes: Tumkuru (KA), Krishnapatnam (AP), Chittoor (AP)

5. Vizag-Chennai Industrial Corridor (VCIC)

Answer

States: Andhra Pradesh, Tamil Nadu
Part of East Coast Economic Corridor (ECEC)
Asian Development Bank (ADB) funding; 800 km coastline leveraged

Transport Infrastructure

Dedicated Freight Corridors (DFC)

Eastern DFC (EDFC):

Route: Ludhiana → Dankuni (near Kolkata)
Length: 1,337 km (operational from 2022)
Key cargo: Foodgrains from Punjab/Haryana, coal from Jharkhand/Odisha, containers

Western DFC (WDFC):

Route: Rewari (Haryana) → Jawaharlal Nehru Port (Mumbai)
Length: 1,506 km (operational 2022)
Key cargo: Containers, automobiles, chemicals, fertilisers
JNPT: India's busiest container port

Benefits of DFC:

Freight train speed: 25 km/h → 50+ km/h
Double-stack container trains (double cargo capacity)
Frees passenger lines — 40%+ rail capacity freed
Logistics cost reduction target: 14% → 8-9% of GDP

Funded by: Japan International Cooperation Agency (JICA) — ₹98,000+ crore loans

National Highways

Total NH length: 1.46 lakh km (2023) — grew from 97,000 km (2014)
Target: 2 lakh km by 2025
NHAI: National Highways Authority of India — manages construction and maintenance
Bharatmala Pariyojana (2017): ₹10.6 lakh crore project; 65,000 km highways; ring roads, economic corridors, border highways
Expressways: Golden Quadrilateral (existing), Delhi-Mumbai Expressway (1,380 km — longest in India), Purvanchal Expressway, Bundelkhand Expressway

Tamil Nadu NH: Chennai-Madurai, Chennai-Bengaluru, East Coast Road (ECR); Total NH = 5,000+ km

Railways

Total route: 68,000+ km — 4th longest in world
Electrification: ~94% electrified (2024) — reduced diesel dependence
Vande Bharat Express: Semi-high-speed train (160 km/h); 50+ routes; made in India (ICF Chennai)
Bullet Train: Mumbai-Ahmedabad High Speed Rail (508 km); Japan Shinkansen technology; expected by 2026-27

Sagarmala Programme

Launched: 2015 (Ministry of Ports, Shipping and Waterways)

Four pillars: 1. Port modernisation: Capacity expansion; mechanisation 2. Port connectivity enhancement: Road, rail, waterway to ports 3. Port-led industrialisation: Coastal Economic Zones (CEZ) near ports 4. Coastal community development: Skill development for fishing communities

India's major ports (12 Major Ports under central government):

Port	State	Specialty
Jawaharlal Nehru Port (JNPT)	Maharashtra	Largest container port
Mumbai Port	Maharashtra	General cargo
Chennai Port	Tamil Nadu	Container + bulk; largest in Bay of Bengal
Tuticorin (V.O.C. Port)	Tamil Nadu	Container; mineral exports
Paradip	Odisha	Coal, fertiliser
Visakhapatnam	Andhra Pradesh	Steel, coal
Kandla (Deendayal)	Gujarat	Petroleum

Tamil Nadu Ports: Chennai (Ennore = Kamarajar Port) and Tuticorin are major; 15+ minor ports.

Sagarmala + Coastal Shipping: India's coastal shipping handles only 6% of cargo (vs 40%+ in China) — massive potential

UDAN Scheme

Full form: Ude Desh ka Aam Nagrik (Let the common citizen fly)

Launched: October 2016 (Ministry of Civil Aviation)

Goals:

Make flying affordable — airfare capped at ~₹2,500 per hour
Connect unserved/underserved airports
1,000+ routes across India; 72+ airports connected
Develop regional airports

Tamil Nadu UDAN impact:

Madurai, Trichy, Salem, Coimbatore — UDAN routes
Trichy: Connected to Chennai, Bengaluru, Hyderabad, Mumbai cheaply

India's aviation growth:

Domestic passengers: ~150 million/year (pre-COVID peak); recovering to 160+ million (2024)
India will need 2,000+ aircraft by 2042 (Boeing forecast)
Air India + IndiGo made record aircraft orders (2023)

Ease of Doing Business

World Bank Doing Business Report (discontinued 2021):

India's rank improved from 142 (2014) to 63 (2020)

World Bank B-READY (Business Ready) Report (new framework from 2024)

Key reforms:

GST: Simplified indirect tax
IBC (Insolvency and Bankruptcy Code) 2016: Faster resolution of bad loans
RERA 2016: Real Estate Regulatory Authority — protects homebuyers
Jan Vishwas Act 2023: Decriminalised 183 provisions across 42 Acts

Startup India (2016):

1 lakh+ registered startups
100+ unicorns (companies valued over $1 billion)
India = 3rd largest startup ecosystem globally (after USA, China)

Board Exam Tips

Make in India: September 25, 2014; logo = lion in gear wheels; 27 sectors (Make in India 2.0)
PLI: 14 sectors; ₹1.97 lakh crore; mobile phones = biggest success (India = 2nd largest maker)
India Semiconductor Mission: ₹76,000 cr; first fab = Tata in Dholera (2024)
Industrial corridors: 5 corridors; DMIC = most advanced; Dholera Smart City in Gujarat
TN corridors: CBIC (Chennai-Bengaluru) and VCIC (Vizag-Chennai)
DFC: Eastern (Ludhiana-Kolkata) + Western (Rewari-JNPT); both operational from 2022; JICA funded
DFC speed: 25 km/h → 50+ km/h; double-stack containers; frees passenger lines
Sagarmala: Port-led development; 12 Major Ports; TN = Chennai + Tuticorin
UDAN (2016): ₹2,500/hour fare cap; regional airports; 72+ airports connected
Vande Bharat: Semi-high speed (160 km/h); made at ICF Chennai
Bullet train: Mumbai-Ahmedabad; Japan Shinkansen; 508 km
Startup India: 1 lakh+ startups; 100+ unicorns; 3rd largest ecosystem globally

Frequently Asked Questions

Make in India: Launched September 25, 2014 by PM Modi. Goal: Transform India into a global manufacturing hub; increase manufacturing's share of GDP from ~15% to 25% by 2025; create 100 million jobs. Three objectives: (1) Increase manufacturing sector GDP share; (2) Create employment; (3) Attract foreign investment. Make in India 2.0 (2020): Focus on 27 sectors — 15 manufacturing + 12 services. Key manufacturing sectors: Auto and Auto Components, Aviation, Defence, Pharmaceuticals, Textiles, Electronics (mobile phones), Food Processing, Chemicals, Medical Devices, Renewable Energy. Key services sectors: IT/ITES, Tourism, Logistics, Legal, Accountancy. Symbol: Roaring lion made of gear wheels — designed by Wieden+Kennedy. Results: India became 2nd largest mobile phone manufacturer (after China); FDI flows increased significantly; defence exports grew 10x. Limitation: Manufacturing share stayed around 15-17% of GDP — target of 25% not achieved yet.