New Delhi, June 4 -- In a world of wildly exaggerated claims for artificial intelligence (AI), the paradox is that the mythology which leads governments to favour manufacturing over services often seems like a global religion.

US commerce secretary Howard Lutnick was quoted a few months ago fantasizing that "the army of millions and millions of human beings screwing in little, little screws to make iPhones" would soon move back to the US. Hardly a fortnight goes by without New Delhi and indeed governments overseas announcing some new incentive for manufacturing. In India's case, this is usually via the production-linked incentive (PLI) scheme.

Also Read: Think ahead: India's electronics manufacturing must go up the value curve

China le...