Says “Production Linked Punishment model of earlier ‘License Raj’ governments”
Prime Minister Narendra Modi took a veiled dig at Congress governments in the past over “license-permit raj”, saying there was a time when a company would be punished if it produced more than a set limit.
Addressing the Economic Times World Leaders Forum 2026, he said there was a ‘Production Linked Incentive’ (PLP) model of “the earlier ‘license raj’ governments”.The Prime Minister said that the government has policies that are “pro-people, pro-growth and pro-development”. PM Modi said that the relationship between the government and citizens should be based on trust, not suspicion.
Prime Minister said the government is moving from a “Prohibited unless permitted” approach to “Permitted unless prohibited” and had brought the Production Linked Incentive (PLI) scheme across sectors. “Hardly anyone present here would know about PLP. PLP stands for ‘Production Linked Punishment.’ No one knows about this. However, you have certainly heard of another term–PLI. PLI stands for ‘Production Linked Incentive.’ These two terms define two different eras in India’s history. We live in the age of ‘explainers,’ so let me explain this to you. There was a time in our country when a company would be punished if it produced more than a set limit. This was the PLP model of the earlier ‘License Raj’ governments,” he said. “There were instances where, if a factory increased production to meet high demand, it would be served a notice. Compelled by circumstances, the company would destroy its own products rather than sell them in the market. The very people who mock the ‘Make in India’ and ‘Atmanirbhar Bharat’ (Self-Reliant India) initiatives today hold this exact mindset–PLP,” he added.
Continuing his veiled attack on the Congress, PM Modi said previous governments had a policy that hampered employment generation and that there was “shortage of essential things”. “Keeping the citizens in shortages was their policy. They wanted the public to come before them with folded hands…You would have understood who I’m talking about. By doing so, they had strangled the basic principle of employment generation. The courtiers of these people did not raise any voice against this,” he alleged.He said the PLI scheme had drawn huge investments. The PLI Scheme was first launched in April 2020, beginning with mobile manufacturing and specified electronic components, critical key starting materials/drug intermediaries and active pharmaceutical ingredients and manufacturing of medical devices.Following its initial success, the scheme was progressively extended to cover 13 key sectors of the economy, including pharmaceuticals, automobiles and auto components, textile products, white goods, and speciality steel.
