You are here: Home » Opinion » Columns
Evaluating a Cabinet
Indian economy's new normal
Business Standard

A subsidy-tariff-permit raj?

If each PLI scheme is to be run by different ministries it's easy to envisage a hydra-headed bureaucracy

Topics
PLI scheme | manufacturing  | Indian Economy

Shankar Acharya 



Shankar Acharya

Over the past three years, our import tariffs have been increased in stages to protect and support a large number of our sub-sectors, thus reversing over 25 years of trade liberalisation undertaken by successive governments. Now, there is a new game in policy town. It’s called production-linked incentive (PLI) schemes. The avowed goal is to boost production in chosen sectors, both for domestic and export markets. The scheme got its big launch in April 2020 in the sub-sectors of mobile handsets and specified electronic components, as well as medical devices and active pharmaceutical ingredients. But, it had been “cooking” over the previous 12-18 months, including preparatory policy measures such as increases in Customs duties on mobile handsets. Early signs of success led, earlier this month, to the Cabinet decisions favouring extension of the to 10 new sectors, including automobiles and auto components, advanced electrical batteries, pharmaceutical products, personal computers and laptops, air conditioners, telecom equipment and specified processed food products.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Thu, November 26 2020. 01:36 IST

RECOMMENDED FOR YOU

.