Cabinet Minister Ashwini Vaishnaw retorted to a media analysis by Bloomberg on the costs and benefits of manufacturing electronics in India expanding on the mobile Production Linked Incentive.
"Mobile PLI stats as follows: Government incentive paid: Rs 19,000 Cr. Direct tax collected: Rs 25,000 Cr. GST collected: Rs 3,00,000 Cr. Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh.," the minister said in a post on X.
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The explanation was a response to an analysis done by Bloomberg on how India replicating China's electronics manufacturing model may not work out, given that the country still imports components like memory chips, processors, lenses and batteries.
The analysis delved into how every one in four Iphone is made in India, but then highlighted that the country may be spending more than it earns by exporting finished handsets.
On top of this, the government also pays assemblers subsidies to compensate the high manufacturing cost, the analysis pointed out adding that taxpayers may be paying more than a dollar to these subsidies.
The analysis by concludes by saying that India may be better off building on its strengths in engineering and designing; and investing in industries like clothing and footwear that can employ tens of millions of people rather than following China's footsteps.
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