Our curbs on computer imports constitute a bold strategic move
Narendra Modi government for India’s economic transformation has paved the way for world-class manufacturing. Production linked incentives (PLIs) have been instrumental in both boosting domestic manufacturing and curtailing a burgeoning trade-deficit in electronics and other manufacturing goods. With an outlay of over ₹2 trillion, the PLI scheme launched in March 2020 began with mobile phones and components, electrical components and medical devices, and was later extended to 14 sectors, including electronics and IT hardware, white goods, drones, telecom, pharmaceuticals, automobiles and auto-components.
As a result, electronics manufacturing attracted massive investments and exports have risen sharply: those of mobile phones crossed $11 billion in 2022-23, thanks to a newly conducive eco-system. Interestingly, the government recently doubled the outlay of its PLI scheme to ₹17,000 crore aimed at having electronic goods and computers made in India. Countries the world over are aiming to de-risk their trade and investments, with global manufacturers diversifying away from China as part of ‘China-plus’ strategies.
India, with its unparalleled demographic dividend and bounty of skill resources, combined with large and fast-growing markets for devices, offers unprecedented opportunities for indigenous manufacturing. In recent years, India’s manufacturing sector has shown a robust performance. Consider the Purchasing Managers Index (PMI).
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