PLI Schemes: PM Modi to meet industry captains on March 5

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March 2, 2021 12:45 AM

Shedding the historical, costly bias in favour of small companies, the government has earmarked big bucks for big firms under the PLI schemes. The total incentives under 13 such schemes, covering sectors including telecom, electronics, auto part, pharma, chemical cells and textiles, stood at Rs 1.97 lakh crore over a five-year period.

The idea was to lure mainly large companies to create “global champions” out of India that have the potential to grow in size using cutting-edge technology and can, thereby, penetrate the global value chains.The idea was to lure mainly large companies to create “global champions” out of India that have the potential to grow in size using cutting-edge technology and can, thereby, penetrate the global value chains.

Prime Minister Narendra Modi is scheduled to meet captains of India Inc on March 5 to deliberate on various production-linked incentive (PLI) schemes that were announced in the aftermath of the Covid-19 outbreak to draw investments from large companies and boost manufacturing.

The industry leaders who are expected to attend the virtual meeting include N Chandrasekaran (Tata Sons), RC Bhargava (Maruti Suzuki India), Sajjan Jindal (JSW Steel), TV Narendran (Tata Steel), Gopal Vittal (Bharti Airtel), Pawan Goenka (M&M) and Sangita Reddy (Apollo Hospitals), Satish reddy (Dr Reddy’s), Manish Sharma (Panasonic India), Manoj Kohli (SoftBank India), Hemant malik (ITC) and RS Sodhi (Amul). Their feedbacks will be used to further bolster the implementations of these schemes, said a government official.

Shedding the historical, costly bias in favour of small companies, the government has earmarked big bucks for big firms under the PLI schemes. The total incentives under 13 such schemes, covering sectors including telecom, electronics, auto part, pharma, chemical cells and textiles, stood at Rs 1.97 lakh crore over a five-year period.

The idea was to lure mainly large companies to create “global champions” out of India that have the potential to grow in size using cutting-edge technology and can, thereby, penetrate the global value chains.

The virtual meeting is part of the Modi government’s various initiatives to fast rekindle growth impulses through a virtuous cycle of investments and soften the Covid blows to the economy. The Prime Minister has already addressed a series of webinars on various proposals of the Budget for FY22 to ensure proper and swift implementations.

Investments remain critical to the country’s resurgence story, as private consumption has been badly bruised by income losses in the aftermath of the pandemic.

Although a contraction in gross fixed capital formation reversed a 46.4% year-on-year slide in the first quarter to register a rise of 2.6% in the three months through December, it still remained far below trend. Private consumption, meanwhile, shrank at a faster pace of 2.4% in the December quarter.

With the businesses going through the reset phase after the substantial lifting of the lockdown curbs, the government hopes to make a sustained push now to draw investors.

Addressing a virtual round-table of mostly foreign investors, Prime Minister Modi, in November 2020, promised “whatever it takes” to make India the engine of global growth. He invited the top executives of 20 global pension and sovereign wealth funds that together manage about $6 trillion in assets to be part of the country’s “exciting progress ahead”.

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