Shift to PLI Schemes Urged for Farmers: A Strategic Call by Montek Singh Ahluwalia

Montek Singh Ahluwalia suggests replacing fertilizer subsidies with Production Linked Incentives for farmers, emphasizing that subsidies should directly benefit them. While hailing PLI success in tech industries, he critiques their use in sectors like garments. Ahluwalia advocates balanced growth in both manufacturing and services to unlock India's potential.

Montek Singh Ahluwalia, former Deputy Chairman of the Planning Commission, has called for a shift from fertilizer subsidies to Production Linked Incentives (PLI) for farmers. In an exclusive conversation with ANI, Ahluwalia expressed concern that current subsidies are enriching the fertilizer industry but deteriorating soil health through overuse.

Ahluwalia argued that providing farmers with direct incentives linked to production could prove more beneficial. He stressed the importance of halting the subsidization of individual inputs, like fertilizers, which lead to market distortions. He urged comprehensive consultations with farmers, economists, and industry experts to devise the optimal strategy.

On the broader scale of PLI schemes, Ahluwalia endorsed their success in technological sectors such as mobile manufacturing and semiconductors. However, he criticized their application in traditional sectors like garments, noting logistical and regulatory issues as more pressing concerns than subsidies.

Ahluwalia lauded efforts to attract major manufacturers like Apple to India through incentives, proposing targeting new industries for future PLI considerations. Aligning with former RBI Governor Raghuram Rajan, he emphasized balancing focus between manufacturing and leveraging India's strong service sector.

Concluding his remarks, Ahluwalia advocated for a nuanced approach to economic policy, aiming for long-term strategic advantages rather than short-term results. His insights suggest thorough planning to address India's economic issues while maximizing its growth potential across various sectors.

(With inputs from agencies.)