ENA Sectors 2023-05-30 14:50:00 <p><span style="font-size:14px"><strong>New Delhi, May 30 (KNN)</strong> Indias thriving mobile phone exports is primarily driven by assembly rather than genuine manufacturing within the country, said Former Reserve Bank of India (RBI) Governor Raghuram Rajan on Monday.</span></p> <p><span style="font-size:14px">Expressing concern about it, Rajan said in a social media post said that the reason behind this could be a deficiency in the flagship Production Linked Incentive Scheme (PLI) scheme.</span></p> <p><span style="font-size:14px"><strong><a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a></strong></span></p> <p><span style="font-size:14px">One key deficiency of the scheme is that the subsidy is paid only for finishing the phone in India, not on how much value is added by manufacturing in India, he said.</span></p> <p><span style="font-size:14px">Cautioning the country, the former governor added that very little apart from assembly is done in India, though manufacturers claim they intend to do more in the future.</span></p> <p><span style="font-size:14px">So India still imports much of what goes into the mobile phone, and when we correct for that, it is very hard to maintain that net exports have gone up, he added.</span></p> <p><span style="font-size:14px">The PLI scheme, introduced by the Indian government in early 2020, entices manufacturers - both domestic and foreign-owned - with a subsidy of 6 per cent of a phones invoice price for each additional unit produced in India, gradually decreasing to 4 per cent over five years, Rajan argued. </span></p> <p><span style="font-size:14px">He called for a careful assessment of the PLI scheme, encompassing an evaluation of job creation and value addition in India, emphasizing the importance of data-driven decision-making. <em><strong>(KNN Bureau)</strong></em></span></p> 33523 https://knnindia.co.in/news/newsdetails/sectors/ex-rbi-governor-raghuram-rajan-cautions-over-growing-mobile-phone-exports-boosted-by-assembly-not-manufacturing 2023-05-30 14:50:00 knnindia.co.in