Mint | Our PLI schemes are in need of a coherent trade policy

The recent spat between former Reserve Bank of India governor Raghuram Rajan and electronics and information technology minister Ashwini Vaishnaw over the former’s criticism of the production-linked incentive (PLI) scheme for semiconductors and other manufacturing sectors is part of an ongoing debate on India’s manufacturing policies. Rajan argues that PLI schemes alone do not add value to electronics and semiconductors, even though value addition is a key objective of the ministry’s 2022 vision document. It aims to increase India’s electronics exports to $300 billion by 2025-26 from $25.3 billion in 2022-23, and deepen integration with global value chains (GVCs). Read the full article here.