Raghuram Rajan: Former Reserve Bank Governor Raghuram Rajan has once again expressed doubts about the economic policies of the Government of India and raised some questions. This time his target is on the Production Linked Incentive Scheme (PLI) of the Central Government and he has asked whether this scheme of the government has proved unsuccessful.
Questions raised on the success of Modi government’s PLI scheme
Former RBI governor Raghuram Rajan, along with some other authors, in a social media note has raised questions as to what is the evidence of the success of the Modi government’s PLI scheme which was originally introduced to boost manufacturing activities in the country. He has questioned whether India has really become a manufacturing giant, whose claims are being made. He has written that after looking at the figures of mobile phone manufacturing in the country, such concerns are coming to the fore, which need to be answered. This is because the focus of this scheme was mainly introduced keeping in mind the manufacturing of mobile phones in the country.
India could not become a leader in manufacturing – Raghuram Rajan
In his research note, Raghuram Rajan has written that India has not yet become a giant in the field of mobile phone manufacturing, as was expected at the time of the launch of these PLI schemes and tall promises were made. Along with him, two more authors Rahul Chauhan and Rohit Lamba have mentioned that this scheme has proved to be a failure in promoting the manufacturing sector.
What is PLI scheme
The Modi government at the Center had announced the Production Linked Incentive Scheme (PLI) at a cost of Rs 1.97 lakh crore. Through this, it was claimed to create champions of manufacturing in various sectors of the country and create general employment opportunities.
Rajan has on PLI scheme raised serious questions
However, Rajan has said that the central government should look at the figures of this scheme carefully and make a detailed assessment as to how many job opportunities have been created so far under the PLI scheme. Why so far the PLI scheme has not been able to benefit different sectors of the country and why it is not working – the government should think about it and answer.
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