"Great job! This article should be shared widely to challenge these self-absorbed armchair economists. Your perspective is important, and I hope it gets the attention it deserves."
There are many dimensions to Rajan’s new book. It will be unfair for me to offer comments merely based upon reviews or TV talks. But I want to say something about PLI which mostly plays in mobile sector.
We harp on rise in exports which is erroneous. Since we do only assembling, we import all its parts. Therefore, the crucial data is Net exports in mobile sector. It is worth noting that net exports (exports minus imports) of mobile phones and components have fallen in the previous 5 years. Govt needs to explain this fall. Is it the case that we have become more dependent on imports despite PLI regime?
Since the value added is so minuscule, we are not sure whether India is paying out more in subsidies and tax concessions than the value added in India. Government should come out with transparent data.
I agree..... the PLI should be a function of the value-added..... but some industries have to be located domestically for strategic reasons. The world learnt this timely lesson during the Covid-19 pandemic.
"Great job! This article should be shared widely to challenge these self-absorbed armchair economists. Your perspective is important, and I hope it gets the attention it deserves."
Thanks a bunch, Doctor Sahib….
There are many dimensions to Rajan’s new book. It will be unfair for me to offer comments merely based upon reviews or TV talks. But I want to say something about PLI which mostly plays in mobile sector.
We harp on rise in exports which is erroneous. Since we do only assembling, we import all its parts. Therefore, the crucial data is Net exports in mobile sector. It is worth noting that net exports (exports minus imports) of mobile phones and components have fallen in the previous 5 years. Govt needs to explain this fall. Is it the case that we have become more dependent on imports despite PLI regime?
Since the value added is so minuscule, we are not sure whether India is paying out more in subsidies and tax concessions than the value added in India. Government should come out with transparent data.
I agree..... the PLI should be a function of the value-added..... but some industries have to be located domestically for strategic reasons. The world learnt this timely lesson during the Covid-19 pandemic.
Even USA is giving hefty subsidies.... to bring chip-manufacturing to US-mainland. It can afford...can we?
https://www.reuters.com/technology/bidens-latest-china-curbs-are-part-plan-shift-chip-production-stateside-2023-10-17/