President PHDCCI, Auto News, ET Auto
New Delhi: Extending the benefits of the Production Incentive Program (PLI) to sectors like tires and steel will further help connect India to global value chains and give companies a competitive edge in the market global, said the new president of the chamber of industry PHDCCI Pradeep Multani said on Thursday.
Under the PLI program, the government is currently offering incentives to 13 sectors. It includes textiles, automobiles, white goods, pharmaceuticals, specialty steels, telecommunications, food products, high efficiency photovoltaic solar modules and advanced chemical cell (ACC) batteries.
He said the PLI program will inspire major national and global players to boost production, build a competitive ecosystem and lead to more inclusive growth.
It will also give a huge boost to global companies looking for options to establish facilities beyond China.
“The expansion of sectors like tires and steel under the PLI program would further help connect India to global value chains, encourage exports, give companies a competitive advantage in the global market and make “India a global manufacturing hub in the times to come,” Multani said. PTI.
He is also president of Multani Pharmaceuticals.
Speaking about India’s economic growth, he said that a GDP (gross domestic product) growth rate of around 10.25% in 2021-2022 and around 9-10% for 2022-2023 is expected.
The improvement in key economic indicators signals a widespread recovery in the coming months, which will be greater than pre-COVID economic activity, he said.
“Major economic and trade indicators such as steel, merchandise exports, foreign trade borrowing and Sensex have shown notable improvement in recent months due to a significant recovery in economic activity and the acceleration of the vaccination campaign in many parts of the country, ”he added. .
India’s economy grew at a record 20.1% in the April-June quarter, helped by a very weak base last year and a sharp rebound in manufacturing and service sectors despite a devastating second wave of COVID-19 cases.
Asked about foreign direct investment (FDI) in the coming months, Multani said India attracted FDI worth $ 81.4 billion in the past fiscal year due to confidence, opportunities and of the friendly business environment offered by the country.
“Pockets of FDI expand in India as states take effective initiatives to facilitate business. International investors remain confident in India’s growth prospects in the coming months due to political stability and economical, ”he said.
He added that further streamlining of institutional stability, such as clarity of regulation and effective remedies and judicial mechanisms, would further support the growth of FDI in India.
He also suggested that the government take initiatives to loosen Indian laws and bureaucracy, bring in investor-friendly land reforms, modernize infrastructure, reduce logistics costs and encourage foreign companies to locate in India.
“It would further improve the ease of doing business,” Multani said.
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