Industrial Policies Alone Cannot Give Desired Results in Tech Sector

The India Cellular and Electronics Industry (ICEA) recently released a report detailing the effects of import tariffs on the domestic electronics industry. Currently, India’s import tariff rate for electronic and technology goods is much more than those of competing countries like China and Vietnam. This has been on the back of the recently announced 76,000 crore package to build the Indian semiconductor industry. But high import tariffs, trade restrictions, and taxation meant as protectionist measures decline the competitiveness of Indian goods in the global market. More importantly, it completely negates the effect of industrial policy measures which are meant to be supportive and business-friendly like the production linked incentive (PLI) scheme.