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Debate over India’s Smartphone Manufacturing Dreams - Coggle Diagram
Debate over India’s Smartphone Manufacturing Dreams
Central Idea
Issue over effectiveness of Central government initiative for electronics manufacturing.
Recent dispute between Raghuram Rajan and Rajeev Chandrasekhar
Steps taken
by India
Electronics Manufacturing Clusters: Specialized clusters for infrastructure and facilities.
Customs Duty Changes: Increased customs duty on smartphone components to promote local sourcing.
Production-Linked Incentive (PLI) Scheme: Financial incentives for increased production and domestic value addition.
Promotion of Component Manufacturing: Initiatives to attract component manufacturers to India.
"Make in India" Initiative: Encouraging domestic manufacturing across sectors, including electronics.
Global Partnerships: Forging partnerships with international companies for technology transfer.
Raghuram Rajan's
Arguement
Assembly vs. Manufacturing: Mostly assembly, not full manufacturing.
Job Quality: Low-level assembly jobs with low pay.
Dependency on Imports: Surge in imports of mobile components.
Economic Impact: Assembly doesn't offer strong economic multiplier effect.
Program's Efficacy: Not turning India into self-reliant manufacturing giant.
Net Exports Concern: Import value surpasses export value.
Government's Response
to Criticisms
Value Addition: Expected rise in value addition over time.
PLI Coverage: Only 22% of mobile production benefits from PLI.
Future Outlook: Long-term benefits of PLI scheme will take time.
Use of Imports: Imported components for other products as well.
Global Best
Practices
Investment in Infrastructure: South Korea's ETRI supports research.
Skill Development: Training programs for skilled workforce.
Ease of Doing Business: Vietnam's business-friendly policies.
Research and Development (R&D): Taiwan's ITRI drives innovation.
Policy Support and Incentives: China's success with policies and incentives.
Global Supply Chain Integration: Malaysia's success in electronics supply chain.
Conclusion
Question: Can PLI program create lasting job opportunities and make India a hub of value-enriched manufacturing?
Balancing Act: Striking balance between domestic production and socio-economic advancement is a challenge.
Spirited exchange reflects intricacies of India's electronics manufacturing scheme.