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August 21, 2026 9:49 PM IST

India Moved from Production-Linked Punishment to Incentivising Production | Production Linked Punishment | Prime Minister Narendra Modi | Production Linked Incentive (PLI)

India Moved from Production-Linked Punishment to Incentivising Production Through PLI: PM Modi

Prime Minister Narendra Modi on Friday said India had moved away from the “Production Linked Punishment” approach associated with the Licence Raj era to a model that incentivises higher production, citing the performance of the Production Linked Incentive (PLI) scheme as evidence of the country’s changing economic approach.

Addressing a media event in the national capital, PM Modi said the PLI scheme had attracted ₹2.5 lakh crore in investment and resulted in production and sales worth ₹22 lakh crore.

The scheme has also contributed to exports worth ₹15 lakh crore and generated more than 14 lakh jobs, he said.

The Prime Minister said the figures reflected a broader shift in the government’s approach towards businesses and production, with greater emphasis on creating an environment that encourages companies to expand manufacturing, investment and employment rather than imposing restrictions.

PM Modi also highlighted the uncertain global environment, saying the world was facing growing challenges as resources were increasingly being weaponised and distrust was becoming a prevailing feature of international relations.

Against this backdrop, he 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 said.

The Prime Minister stressed that India’s future could not be built in isolation and underlined the need for the country to work with the global community amid continuing geopolitical and economic uncertainties.

He said India had adopted an approach of “leading with all”, emphasising the importance of partnerships and cooperation in navigating an increasingly uncertain global economic landscape.

(With inputs from IANS)

Last updated on: 21st August 2026

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