New Delhi, May 7 -- Arvind Panagariya, chairman of the 16th Finance Commission, asserted on Monday that India's production-linked incentive (PLI) schemes should be judiciously applied to avoid undercutting the nation's competitive export industries.
While acknowledging that targeted PLIs aimed at larger, more efficient firms should not be equated with indiscriminate protectionism, he cautioned against broad-based incentives across all sectors, reported FE.
If we use PLIs selectively to promote two or three sectors, that is one thing. But if these are used as a tool for overall industrialisation, with a focus on import-substitution industries, it would amount to punishing competitive export industries, stated the noted trade economist....