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Critique of India's Performance Linked Incentive Scheme and Foreign Investment Trends
The chapter delves into the flaws of India's Performance Linked Incentive (PLI) scheme, questioning its effectiveness in attracting foreign investors and creating national champions. It discusses the trends of Foreign Direct Investment (FDI) in sectors like Global Capability Centers (GCCs) versus traditional manufacturing, highlighting the complexities of economic development beyond government schemes. The chapter also explores issues related to India's agriculture, budget allocations, and the impact of farmer's protests on reforms, as well as the strategic importance of incentivizing equity investments over real estate in the country.