You are here: Home » Opinion » Editorial » Editorials
Business Standard

Return of rent-seeking

PLI schemes have already set off the expected lobbying

Topics
PLI scheme | Manufacturing sector | Make in India

Business Standard Editorial Comment  |  New Delhi 

The government’s initial push under “Make in India” to attract manufacturing has not succeeded as hoped. Perhaps that is one reason, alongside a more general scepticism about trade that has caused the rash of recent 1970s-style industrial policy announcements, from “champion sectors” to “production-linked incentives” (PLI). Economists have warned that these inducements to investment have been tried in India before but come with a dangerous tendency to become self-sustaining, causing a permanent drain on the treasury without really improving competitiveness. The first signs of such a development are, sadly, already visible. A body representing mobile handset makers has said its members may miss their targets under the production-linked incentive scheme for 2020-21, but should nevertheless not be penalised. They say that the government could rework the five-year map for the scheme without compromising its overall direction.

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

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, December 28 2020. 22:35 IST
RECOMMENDED FOR YOU
.