There is no substitute for an industrial policy
PLI is good for high-end manufacturing, but industrial policy is best bet for mass job creation.
Make in India vs. Historical Policies
- Divergence from Past Policies: Make in India contrasts with 1970s self-sufficiency dogma, avoiding protectionist measures.
- Concerns of Protectionism: Fears arise over tariff hikes in some sectors, reminiscent of 1970s protectionist tendencies.
- Need for Caution: Protectionist history caused shortages and rent-seeking; calls for careful implementation of Make in India.
Examination of Make in India's Objectives
- Core of Make in India: Launched in 2014 to boost manufacturing, transform India into a global export hub.
- Derivatives of Make in India: Made in India and Make for India exist, but MII remains fundamental.
- Critical Questions: Scrutiny needed on how MII is sold to the public and if it fulfills promised objectives.
Evaluating Industrial Policy and Job Creation
- Industrial Policy Impact: New Industrial Policy 2023 put on hold; PLI aims to attract investments and ensure efficiency.
- Need for Articulation: Industrial policy required for job creation, particularly in a labor-abundant country.
- Importance of Data: Lack of frequent and detailed PLI data hinders scrutiny; need for policies promoting labor-intensive manufacturing.