Winning Bizness Desk

Mumbai. Former Reserve Bank of India (RBI) Governor Raghuram Rajan has raised questions on the PLI scheme. In a research note, he said that this is a plan that will fail. In this scheme, a special focus has been placed on mobile manufacturing. But the truth is that India has not become a hub of mobile manufacturing. He says that so far no effect of this scheme is visible. Therefore, its performance should be reviewed before implementing it in other areas. The government has launched a Rs 1.97 lakh crore Production Linked Incentive (PLI) scheme for various sectors to boost manufacturing and increase employment opportunities in the country.

Government should review the number of jobs

The note states, the central government should review the number of jobs generated by the PLI scheme, the cost of employment and why it has not worked so far. As per the report, before 2014 there were only two manufacturing factories in the country. Now it is above 200. In the financial year 2023, about Rs 1,85,000 crore worth of electronic goods were exported from the country.

India does not export any of the major mobile components

In its first year, this figure was Rs 1,16,936 crore. In this way, it has increased by 58 percent in one year. According to the research note, the finishing of phones in PLI countries is subsidized. India still imports most of the components for mobile phones. According to the data shared by Rajan, India does not export any of the major mobile components. These include semiconductors, displays, cameras and batteries.