Reorient PLI scheme on labour-intensive sectors to create more jobs: NCAER

Reorienting the production-linked incentive (PLI) schemes by focusing on labour-intensive industries instead of the current focus on capital-intensive ones could help increase job creation, according to a report released by the National Council of Applied Economic Research (NCAER).

- AUHONA MUKHERJEE

The report states that increasing focus of PLIs on labour-intensive sectors such as textiles, garments, footwear, and food processing may lead to a higher job multiplier. A job multiplier indicates the number of jobs created in an economy for one job created in a particular industry as the current PLI schemes are mainly concerned with increasing the production of high value products, which require high skill and specialised labour with a lower focus on low and middle-skilled labour-intensive sectors.