Transforming manufacturing Dependence on PLI should be contained

Intending to formulate a production-linked incentive (PLI) scheme for electronics-component manufacturing, the Ministry of Electronics and Information Technology, as reported by this newspaper, has asked various stakeholders to share information related to India's disabilities against competing countries, export potential, major buyers of components and sub-assemblies, and foreign and domestic firms planning to set up manufacturing plants in the country.

The government aims to increase capacity, enhance cost-effectiveness, and create a component ecosystem worth $75 billion over the next five years. Past evidence, however, begs the question of whether PLI can help transform India's manufacturing ecosystem.