Business News | India's PLI Scheme Has Potential to Add 4 Pc to GDP Annually: Report
Get latest articles and stories on Business at LatestLY. The Centre's production-linked incentive (PLI) scheme has the potential to add nearly 4 per cent to GDP in terms of incremental revenues, says a report.
New Delhi [India], July 6 (ANI): The Centre's production-linked incentive (PLI) scheme has the potential to add nearly 4 per cent to GDP in terms of incremental revenues, says a report.
The PLI scheme aims to provide nearly Rs 2.4 lakh crore worth of incentives over the next five years, with the lion's share going to electronics, auto components, and pharma.
"The Indian consumer was missing in action for almost 5 years due to multiple reasons like demonetization, GST, COVID, and lack of inflation. The growth in per capita GDP picked up in FY22 and per capita GDP was higher than in FY20 after a dip. The discretionary income of Indian consumers is likely to rise from FY23 to FY27," said brokerage firm Emkay Investment Managers in a statement.
Manufacturing companies are adding capacities due to the robust returns of the investments, and registration of such companies has shot up to the highest ever in the last seven years, it said.
On China, it said the country is facing disruption in the supply chain due to COVID as their manufacturing of goods as well as shipping is affected.
It added that developed nations have imposed anti-dumping duties on a lot of Chinese goods Besides, the extent of depreciation of the Rupee as compared to that of the Chinese currency Yuan is making India more competitive. The key beneficiaries of this advantage are likely to be auto and auto components, textiles, chemicals, and capital goods.
Vikaas M Sachdeva, CEO, Emkay Investment Managers expects the manufacturing sector to become the mainstream investment theme. After a long hiatus, manufacturing companies are likely to be the wealth creators, leaders of the next rally in the markets.
"The current financial matrix as well the policy support is best suited for the manufacturing companies to outperform the broader markets. China+1 is a big thing to watch out for. This is the right time for the Indian manufacturing companies to make a mark at the international level," said Sachin Shah, Fund Manager, Emkay Investment Managers.
Emkay Investment Managers is a wholly-owned subsidiary of Emkay Global Financial Services and is a SEBI registered portfolio manager since 2003. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)