
Did Make in India Protect Domestic Manufacturers? Evidence from Effective Rates of Protection (2005-2023), with a focus on the Mobile phone, Television, Automobile, and Air Conditioner Industries.
The paper examines whether India’s post-2014 Make in India tariff hikes actually protected domestic manufacturers or created an inverted duty structure instead. Using Corden’s ERP formula across four electronics/auto sectors from 2005–2023 (tariff data from WITS, cost shares from the 2015–16 Input-Output Table), it finds mobile phones as the standout case of policy failure: ERP was negative for over a decade because finished phones faced near-zero duty while their components were taxed higher, only flipping positive in 2019 when output tariffs rose to 7.5%. Televisions and ACs stayed positively protected throughout, and automobiles’ high ERP predates 2014 entirely. An import-value cross-check shows declines in phones and ACs coinciding with the 2019 tariff change, though PLI incentives and COVID complicate attributing causation. Bottom line: Make in India’s flagship electronics sector spent years effectively penalizing the domestic assembly it was designed to support.







