The not too long ago launched ‘The Indian Economy – A Review’ by the Department of Economic Affairs, Finance Ministry, has revealed a notable surge in industrial progress, showcasing a probable 8% each year progress trajectory for the triennium ending March 2024.
The report attributes this progress to strategic authorities initiatives, significantly emphasizing the success of ‘Make in India’, the Production-Linked Incentive (PLI) scheme, developments in the MSME sector, the Open Network for Digital Commerce, and achievements in Large-Scale Electronics Manufacturing.
Make in India & PLI
As per the report, underneath the ‘Make in India’ initiative, the federal government has taken focused measures to fortify home manufacturing and improve self-reliance throughout varied industries.
A key driver in this endeavour has been the PLI scheme, encompassing 14 sectors. The scheme, with an outlay of Rs 1.97 lakh crore, has accepted 746 purposes by December 2023, benefiting 176 MSMEs.
Notable outcomes embody an funding exceeding Rs 1.07 lakh crore, resulting in manufacturing/gross sales of Rs 8.7 lakh crore and the technology of over 7 lakh jobs. Exports underneath the scheme have surpassed Rs 3.4 lakh crore, with vital contributions from massive-scale electronics manufacturing, prescribed drugs, meals processing, and telecom and networking merchandise.
The report famous that the important thing achievements underneath the PLI scheme embody substantial worth addition in cellular manufacturing, profitable import substitution in telecom, vital discount in uncooked materials imports in the pharma sector, elevated turnover in the drones’ sector, and enhanced home sourcing of uncooked supplies in meals processing.
Supporting Measures
The report highlighted the growing vibrancy and dynamism of Micro, Small, and Medium Enterprises (MSMEs), propelled by supportive authorities measures.
The Union Budget for FY24 facilitates well timed funds to MSMEs by permitting tax deductions solely when funds are made. Amendments in the Micro, Small, and Medium Enterprises Development Act mandate curiosity funds on delayed funds to MSMEs, offering a lift to their monetary well being. The Udyam portal and Udyam Assist Platform (UAP) have streamlined data on MSMEs, with 2.24 crore MSMEs registered on the Udyam portal and 1.2 crore models on the UAP.
The PM Vishwakarma initiative, launched in September 2023, presents holistic assist to artisans and craftspeople, attracting 48.8 lakh enrolments by the tip of December 2023.
Furthermore, the report famous that the Open Network for Digital Commerce recorded over 6.3 million transactions in November 2023. Regulatory reforms, together with the decriminalisation of three,600 compliances, have considerably improved the benefit of doing enterprise. The Jan Vishwas Amendment Bill 2023, aiming to decriminalise 183 provisions throughout 42 Central Acts, additional enhances the enterprise surroundings.
Similarly, the report famous that underneath the Pradhan Mantri Mudra Yojana, a formidable Rs 25.98 lakh crore has been disbursed to non-company, non-farm small and micro-enterprises. The Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) noticed a major enhance in credit score assure limits, rising from Rs 2 crore to Rs 5 crore in April 2023. Guarantees underneath the Emergency Credit Line Guarantee Scheme (ECLGS), a part of the Aatmanirbhar Bharat package deal, have reached Rs 2.4 lakh crore.
As per the report, the Unified Logistics Interface Platform (ULIP), a cornerstone of the National Logistics Policy, has seamlessly built-in with 35 programs throughout eight totally different ministries, attracting 699 trade gamers.
It additionally cited a report by Bernstein, which emphasised a major discount in logistics prices for vehicles, coupled with a rise in distance travelled per day after the implementation of GST. It was highlighted that the federal government’s strong capex push, coupled with measures to extend home metal manufacturing and give attention to reasonably priced housing, has resulted in a exceptional 12% each year progress in the development sector from FY22 to FY24.
