IMFA MD & FICCI Senior VP Subhrakant Panda has stated that the Production Linked Incentive (PLI) Schemes launched by the current government will have a significant impact on manufacturing growth.
Panda and Grant Thornton Bharat CEO Vishesh C Chandiok were engaged in a conversation with Aabha Bakaya at Brainstorm Budget 2022 on the session "Industry: Boom Times Again".
Answering a question on what the challenges the manufacturing sector still faces and how he sees the benefit of PLI schemes kicking in during the coming months, Panda said, "Manufacturing is obviously a core sector. On the things about manufacturing in India has been that looking at the past 15-20 years across several governments, the intent to push manufacturing to about 25 per cent of the GDP has always been there, but somehow the intent has not translated into actual growth and investments on the ground."
"To that extent, what this government has done in terms of PLI Schemes, which I believe will have a significant impact, because of close to Rs 3 lakh crore in terms of incentives to be paid out linked to manufacturing growth in 13-14 sectors," he added. "That's not a small sum of money and that's something that will bring about growth," he further added.
The IMFA MD conveyed that PLI schemes will lead to creating "global champions". He believes that the intent behind the PLI schemes is not to have a permanent incentive structure but to give an initial boost in some sectors.
He added that the government has also done a significant amount of work to promote ease of doing business in the manufacturing sector.
Meanwhile, answering a question on the government meeting its CAPEX spending target for FY22, Chandoik said that he believes CAPEX allocation for FY22 will be fully utilized. "By end of the year, we should see the government not only achieve the target but succeed it," he said.
He added that FY 23 will be significant in terms of CAPEX being properly spent which will aid and albeit the economic recovery.
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