![\"An](\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/05\/PLI-scheme-for-Electronics-300x200.webp?resize=603%2C402&ssl=1\")
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Source<\/strong>: The post India want to boost the electronics-component manufacturing industry through a PLI scheme has been created, based on the article \u201cTransforming<\/strong> manufacturing<\/strong>: <\/strong>Dependence<\/strong> on<\/strong> PLI<\/strong> should<\/strong> be<\/strong> contained<\/strong>\u201d published in \u201cBusiness <\/strong>standard<\/strong>\u201d<\/strong> on 9th May 2024.<\/p>\n UPSC<\/strong> Syllabus<\/strong> Topic<\/strong>:<\/strong> GS Paper 3<\/strong>-Economy-Changes in industrial policy and their effects on industrial growth.<\/p>\n News<\/strong>: The Ministry of Electronics and Information Technology wants to boost the electronics-component manufacturing industry through a PLI scheme. An Analysis of PLI scheme for Electronics<\/p>\n For details information on an<\/strong> analysis<\/strong> of<\/strong> PLI<\/strong> (<\/strong>production<\/strong>–<\/strong>linked<\/strong> incentive<\/strong>) <\/strong>scheme<\/strong> read this article here<\/a><\/p>\n Enhance Production Capacity:<\/strong> The Ministry aims to create a $75 billion component ecosystem over five years to increase production capacity and make electronics manufacturing cost-effective.<\/p>\n Global Strategy Alignment: <\/strong>Amid rising US-China tensions, India seeks to be part of the China-plus-One strategy, offering a manufacturing alternative for global corporations.<\/p>\n Subsidies as Incentive:<\/strong> The PLI scheme offers subsidies of 4-6% to attract investment and expand domestic manufacturing.<\/p>\n Mixed Success:<\/strong> While mobile phone manufacturing, particularly Apple\u2019s iPhones, has seen some success, most components are still produced abroad. Companies like Wistron and Pegatron have exited the market.<\/p>\n Limited Investment:<\/strong> Investment hasn’t met expectations in sectors like solar panels, automobiles, and textiles, which were expected to benefit from the PLI scheme.<\/p>\n Failure to Create Jobs:<\/strong> The scheme hasn’t generated the required employment in labor-intensive industries like textiles, which still struggle with slow investment growth.<\/p>\n Import Dependence:<\/strong> Even for successful mobile phone assembly (e.g., Apple’s iPhones), most components are still imported, reducing domestic production benefits.<\/p>\n Market Interference: <\/strong>The scheme\u2019s subsidies interfere with market operations and raise bureaucratic control.<\/p>\n Low Utilization:<\/strong> Actual spending on the PLI scheme remains a fraction of the planned budget.<\/p>\n Avoid<\/strong> Over<\/strong>–<\/strong>Reliance<\/strong> on<\/strong> Subsidies<\/strong>:<\/strong> As economist Arvind Panagariya pointed out, PLI isn\u2019t suitable for all sectors. Instead, subsidies should be more focused.<\/p>\n For details information on PLI<\/strong> scheme<\/strong> alone<\/strong> would<\/strong> not<\/strong> be<\/strong> enough<\/strong> read this article here<\/a><\/p>\n Strengthen<\/strong> Infrastructure<\/strong> and<\/strong> Policy<\/strong>: Improving infrastructure, maintaining low tariffs, and building a skilled workforce are essential for long-term success.<\/p>\n Study<\/strong> Past<\/strong> Results<\/strong>: <\/strong>The government should analyze the effectiveness of the PLI scheme before expanding it to new sectors.<\/p>\n Question<\/strong> for<\/strong> practice<\/strong>:<\/strong><\/p>\n Examine how the issues and limitations of the PLI scheme impact India’s goals for boosting electronics-component manufacturing.<\/p>\n","protected":false},"excerpt":{"rendered":" Source: The post India want to boost the electronics-component manufacturing industry through a PLI scheme has been created, based on the article \u201cTransforming manufacturing: Dependence on PLI should be contained\u201d published in \u201cBusiness standard\u201d on 9th May 2024. UPSC Syllabus Topic: GS Paper 3-Economy-Changes in industrial policy and their effects on industrial growth. News: The… Continue reading An Analysis of PLI scheme for Electronics<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":295113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216,8184],"class_list":["post-295071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2024\/05\/PLI-scheme-for-Electronics.webp?fit=1280%2C853&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=295071"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/295113"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=295071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=295071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=295071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why<\/strong> does<\/strong> India<\/strong> want<\/strong> to<\/strong> boost<\/strong> the<\/strong> electronics<\/strong>–<\/strong>component<\/strong> manufacturing<\/strong> industry<\/strong> through<\/strong> a<\/strong> PLI<\/strong> scheme<\/strong>?<\/strong><\/h2>\n
What<\/strong> are<\/strong> the<\/strong> issues<\/strong> with<\/strong> the<\/strong> PLI<\/strong> scheme<\/strong>?<\/strong><\/h2>\n
What<\/strong> should<\/strong> be<\/strong> done<\/strong>?<\/strong><\/h2>\n