New Delhi, Aug. 31 -- The government recently extended production-linked incentives (PLIs) for the domestic manufacture of cellphones that expired a few months ago for another five years.

The scheme has a standout record. It has vaulted India to the world's second spot in making handsets, created thousands of jobs, especially for women, and bumped up exports.

Its renewal, however, suggests that the contract-job factories for the world's top brands like Apple, Samsung and Xiaomi still depend on a subsidy to remain competitive even after five years of support. The scheme also loses some sheen if its impact is held against the light of details. India's export boom, for example, needs to be viewed in the context of an import surge to feed i...