Production Linked Incentives (PLIs) ensure that a good report card will be obtained as the authorities focus on multiple sectors to keep inducing growth and investment
Amitabh Kant, CEO, Niti Aayog, puts his finger on the pulse when he outlines the forward thinking measures adopted by the Indian government to put the economy on track and towards a visible growth path. The Production Linked Incentives (PLI) schemes across platforms are ensuring a good report card will be obtained. “There are clear signs that the economy is reviving,” said Kant in a recent interview. “If the economy is reviving, that means employment is reviving. If employment is rising, then demand will rise as well. Therefore, as a result of the initiatives taken to boost employment, we should see demand rise as well.”
The government has advocated and put into action reforms in labour, agriculture and manufacturing, but it is investment in infrastructure and logistics that will also be an important component in driving the machine of the Indian economy forward. The government has offered incentives worth $7.67 billion to auto and auto parts companies, $2 billion to the pharmaceutical sector and around $1.48 billion each to manufacturers of textile and food products.
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The authorities have shown proactivity in pushing money into the National Investment & Infrastructure Funds and this will be an essential part of Atmanirbhar Bharat 3.0. It is heartening to note that ministers are taking it upon themselves to push the prime minister's reform driven agenda forward and on a war footing. States are being instructed to initiate land and labour reforms while there is a clear sign that sunrise sectors of growth are being studied and embraced. India is also being seen as leading the charge locally and internationally on mobility - electric and battery storage -healthcare and education as well.
The application of technology across sectors ensures that the government is keeping a steady pace on this platform as well. The future of manufacturing is becoming increasingly tech driven and the country needs to be at the forefront of this revolution as it lays down its credentials for global attention in FDI. Artificial Intelligence (AI) and blockchain are areas of attention and solutions presented by Indian IT specialists are case studies that can be replicated across the world.
The core idea is for India to remain competitive against all the odds and the areas of food processing, mobile manufacturing, networking products, pharma, medical devices and solar photovoltaic system manufacturing are sectors that remain in play as the economy finds its feet and moves ahead. This has been aptly reflected as India climbs several notches in the World Bank's Ease of Doing Business Index and doing business is getting easier as the economy resets and re-energises itself for a big push. Manufacturers in 10 sectors including automobiles and auto parts, pharmaceuticals, textiles and food products will attract investment. The schemes have been designed to ensure that critical sunrise sectors get necessary support from the government in order to build an India which is strong enough to serve the domestic market and link up with the global value chain is well underway.
Domestic industry is becoming increasingly competitive and the country is presenting itself as a viable alternative to companies who are looking to diversify their supply chains in the huge domestic market. The Atmanirbhar Bharat idealogy introduced by the prime minister is a classic example of brilliant statesmanship and it is getting headlines across the world while proving to be showcase self-reliance and being a driver of global exports. Consistency is now the key.
As the elements that drive the economy fall into place so too will be the increase in job creation. Jobs in the informal sector will show signs of life and while the aim of the government is to ensure the formalisation of the Indian economy this phenomenon will bring with it formal job contracts and its related benefits making the life of the workforce more secure.