IT Minister Ashwini Vaishnav speaks on iPhone PLI scheme controversy: ₹3.25 lakh crore tax was received by giving ₹19,000 crore incentive; Told the critics – ‘Keep burning’

Ashwini Vaishnav-file photo

Amid the ongoing debate over India’s iPhone manufacturing boom and the Production Linked Incentive (PLI) scheme, Union Electronics and IT Minister Ashwini Vaishnav has responded to critics with figures. In a video report by Bloomberg, questions were raised on India’s iPhone assembling and government subsidies.

In response to this, Vaishnav, while sharing official figures on social media platform Taking a dig at the critics of the scheme, Vaishnav wrote – “Cope Harder!!” That means keep burning/tolerating it.

Vaishnav released figures on social media and replied

Union Minister Ashwini Vaishnav said that the electronics manufacturing sector is providing employment on a large scale in the country. According to statistics, 25 lakh people have got employment in this sector, out of which 12 lakh people alone are working in mobile manufacturing.

This statement of Vaishnav comes after the Bloomberg report, in which it was claimed that India is giving incentives to the companies with the taxpayers’ money, but the most expensive and main parts (components) of the iPhone are still being imported from abroad.

What questions were raised in the Bloomberg report?

Bloomberg Opinion columnist Andy Mukherjee studied the parts of an iPhone by disassembling it in the Sham Shui Po district of Hong Kong. He raised the question of whether India should try to copy China’s success in high-tech manufacturing or not.

However, the report acknowledged that India has developed in manufacturing. Whereas earlier fully formed mainboards were imported, now blank circuit boards are being imported into India and parts are being assembled locally. Due to this, India’s mobile trade balance has improved by $ 2.1 billion i.e. about Rs 17,500 crore in one year. Today, 1 out of every 4 iPhones manufactured in the world is being manufactured in India.

Expensive parts still imported, concern expressed over subsidy

Despite this, the Bloomberg report argues that India is still completely dependent on foreign imports for expensive components like memory chips, processors, displays, camera lenses and batteries. According to Andy Mukherjee, India spends more money on importing components than it earns from exporting finished handsets.

The report said that if manufacturing costs remain high, the government may have to pay more in incentives than the extra wages given to factory workers.

Raghuram Rajan has also raised questions on semiconductor and PLI.

The Bloomberg report also raised questions on semiconductors and said that despite giving billions of dollars in subsidies, India has still been able to reach only testing and packaging. True high-end chip fabrication will still be years away. India should focus on its strength i.e. engineering and design and invest in industries like textiles and shoes, where crores of people can get employment.

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