Industry And Cluster | News & Insights

India isn’t China; Copying its industrial, trade policy could invite sanctions.

Published: March 17, 2021
Author: Manali bhanushali

The government has announced a production-linked incentive (PLI) of 4-6% of sales, costing around Rs 200,000 crore (0.7% of GDP) over five years in 11 sectors for companies that commit to invest and increase production massively. This implies India is abandoning the earlier WTO vision of moving towards an open economy governed by international rules. Instead India seeks to copy China’s “industrial policy” or state support to select sectors to make them national champions. Very risky. India is not China. Atmanirbhar means self-reliance. The government says this is not self-sufficiency, which was attempted — with disastrous results — by Nehru and Indira Gandhi. Atmanirbhar aims to produce not just for India but the world, making India an export hub with job.

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