Mobile phone PLI is an India success story

Most reports fail to grasp the progressive benefits of the scheme

Several recent newspaper articles have tried to create a narrative questioning the role of the production-linked incentive (PLI) scheme in promoting mobile phone exports, citing low value addition in India.

The key elements of criticism include: The net imports of mobiles have turned positive only because of the imposition of higher tariffs; the incentive payment in PLI scheme may outweigh the value added in India; India became import dependent since the PLI scheme’s announcement; and that there is a need to reassess job creation and the associated cost for such jobs under the scheme. These points are largely incorrect, as