Should India choose manufacturing over services?

Earlier this week, the former Governor of the Reserve Bank of India, Raghuram Rajan, questioned the Central government’s production-linked incentive (PLI) scheme, arguing that it works against the interests of Indian consumers. In doing so, he revived the larger debate on the government’s efforts to promote the country’s manufacturing sector through subsidies, and on its relative importance vis-a-vis the services sector.  Here we discuss this issue and talk about creating enabling conditions. Guests: Nagesh Kumar, Director at the Institute of Studies in Industrial Development; Ajay Shah, Research Professor of Business at Jindal Global University Host: Prashanth Perumal J