Industrial policy, the idea that the government can play a significant role in building out parts of the economy for various purposes, is back globally. The United States’s Inflation Reduction Act is the prime example, using state subsidies, tax breaks, loans, and grants to support industries that the US has deemed strategic. India, too, is no stranger to this trend. India introduced Production Linked Incentives in 2020, providing a financial boost to firms that expanded their manufacturing within the country, starting with three industries – pharmaceutical, electronics, and medical devices – and then expanding them to cover many more sectors....