The current PLI scheme is bound to cause a surge in imports, which is likely to worsen the balance of trade. That is compounded by the weakening of the rupee, which in turn has been exacerbated by the government’s encouragement more to portfolio investors, rather than industry investors
India’s forex reserves have been falling since October 2021. This is not a global phenomenon but is linked directly to the manner in which India has planned its forex inflows – especially foreign direct investments
Even a cursory look at India's export figures will confirm that India's exports have been flagging. While the pressure on exports has been evident since 2009,it is more markedly so since 2014-15.