Industrial policy is fashionable again. From Washington to Brussels, Tokyo to Seoul, governments are writing large cheques to attract factories, secure supply chains and reduce strategic dependence. Covid, weaponisation of trade and fracturing of the China-centric manufacturing consensus have reminded policymakers that manufacturing is not merely an economic activity, but also a source of resilience, employment, technology and geopolitical leverage.
But the hard truth is that most industrial policy sounds impressive at launch and disappoints in delivery. India's smartphone PLI scheme is, therefore, worth examining. In 5 yrs, it transformed India from a large consumer market into one of the world's most important smartphone manufacturing and export hubs.
