PLP to PLI, reform express at full speed, says PM Modi

TNN / Aug 22, 2026, 01:08 IST

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PM Modi addresses ET World Leader Forum

NEW DELHI: PM Narendra Modi said the country has moved from "production-linked punishment" (PLP), where companies were penalised for producing more by the "licence raj govts", to a regime where higher production is incentivised through schemes such as PLI (I for incentive), and vowed to pursue reforms with greater vigour to realise the goal of 'Viksit Bharat'.Atmanirbhar Bharat initiatives, Modi said they wanted people to remain helpless.

Here's what PM said

Policies should be tailored for country, not country for policies: Modi

A distorted mentality was at work behind such âproduction-linked punishmentâ (PLP) policies.

People with that mindset always wanted a shortage of essential goods to persist. Their policy was to keep citizens in a state of scarcity, so that people would remain dependent on them. Their style of governance was to first make people plead before them and then act as if they were granting favours⦠You can imagine how such an approach strangled the basic principle of employment generation. What is even more surprising is that the courtiers of those govts â I repeat, their courtiers â never raised their voices against it, PM Narendra Modi said at ET World Leaders Forum Friday. He said, in contrast, production-linked incentive (PLI) has generated massive investments, created lakhs of jobs and helped boost exports.