Sakshi Education
By Srirangam Sriram, Sriram's IAS, New Delhi.
With these moves, India has positioned itself as a strong alternative to companies looking to diversify their supply chains. Essentially, decouple from China.
Combined with the potential of our large domestic market, India is poised to take its rightful place in global value chains. The Atma Nirbhar initiative will make India both self-reliant and a key driver of global exports. We need an export push for India to grow fast and on a sustained basis.
Production-Linked Incentive (PLI) scheme operates for 13 sectors since November 2020. For example, pharmaceuticals, automobiles and auto components, telecom and networking products, advanced chemistry cell battery, textile, food products, solar modules, white goods, and specialty steel. Investment in these sectors by Indian and foreign firms will give tax concessions as specified in the rules.
It will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology, ensure efficiencies, create economies of scale, enhance exports, and make India an integral part of the global supply chain.
The PLI schemes must also be seen in conjunction with a host of other government initiatives taken recently--
It will make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology, ensure efficiencies, create economies of scale, enhance exports, and make India an integral part of the global supply chain.
The PLI schemes must also be seen in conjunction with a host of other government initiatives taken recently--
- 29 central labour laws have been rationalised into four labour codes.
- The MSME definition has been revised, raising investment limits upwards, enabling MSMEs to get bigger and more productive without losing subsidies and other affirmative benefits.
- Infrastructure investments are continuing in earnest with the Rs 1 crore national infrastructure pipeline.
- Our corporate tax rates are now on par with the best in the world.
- Market reforms in agriculture for storage and other logistics
With these moves, India has positioned itself as a strong alternative to companies looking to diversify their supply chains. Essentially, decouple from China.
Combined with the potential of our large domestic market, India is poised to take its rightful place in global value chains. The Atma Nirbhar initiative will make India both self-reliant and a key driver of global exports. We need an export push for India to grow fast and on a sustained basis.
Published date : 15 Dec 2020 12:31PM
