India’s Strategic Investments in Infrastructure and Expanded PLI Scheme Foster Growth and Innovation, Announces DPIIT Secretary
New Delhi May 2023: Shri Rajesh Kumar Singh-IAS, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, unveiled the country’s significant investments in infrastructure development, along with the expansion of the Production Linked Incentive (PLI) scheme for labor-intensive sectors. Shri Singh made the announcement during a dynamic interactive session titled “Unleashing Innovation: Powering Progress Through Startups and Traditional Businesses,” organized by the PHD Chambers of Commerce and Industry (PHDCCI).
In his opening remarks, Secretary Singh emphasized India’s enviable position on the global stage, combining political stability, strong leadership, and relative seclusion from geopolitical disruptions witnessed in other parts of the world. He underscored India’s robust macroeconomic indicators, projecting a promising outlook for the nation. Of note is India’s demographic dividend, with an estimated 20% increase in the world’s working-age population expected to be concentrated in India over the next decade.
Singh further informed that India’s extensive investment plans earmark nearly a trillion dollars over the next five years for road construction, airport expansion, and other critical infrastructure projects. India’s digital infrastructure is also gaining momentum, bolstering the country’s growth potential. These factors collectively position India as a “bright spot,” as recently described by the President of the World Bank, amid a global economic landscape facing challenges.
The Secretary reiterated the government’s vision to transform India into a developed country within 25 years. To achieve this, India aims to consistently grow at an impressive real growth rate of 8 to 9%. Singh expressed confidence in achieving this target, given India’s recent economic performance, supported by stable governance, a vibrant democracy, and a predictable regulatory system. The government has undertaken numerous initiatives, including the implementation of the Goods and Services Tax (GST), corporate tax reduction, financial market reforms, and the consolidation of public sector banks, all aimed at reducing the compliance burden for industries.
Highlighting the success of the PLI scheme, Singh underscored its positive impact across 14 sectors of the economy, with an initial investment of 1.97 lakh crores. The scheme has yielded substantial results, with incremental sales surpassing the government’s offered incentives in terms of indirect and direct taxes. Singh emphasised that this growth-oriented approach aligns with Prime Minister Narendra Modi’s vision of fostering a developed society, targeting a GDP growth from three and a half trillion to about 5 trillion within the next five years and closer to 32 trillion within 25 years.
India’s progress in ease of doing business rankings was lauded, with a notable improvement of 65 places since 2014, currently ranking third globally in terms of startup ecosystems. The Economist Intelligence Unit (EIU)’s Business Environment Ranking (BER) recognised India’s ascent from 14th to 10th among Asian economies. Shri Singh, while acknowledging these achievements, emphasised the importance of ensuring effective implementation at the state and local levels, urging industry associations to provide valuable feedback.
The DPIIT Secretary highlighted India’s attractiveness for foreign direct investment (FDI), with a policy that embraces an open sky approach, excluding only defence and certain strategic sectors. In the past year alone, India attracted nearly $ 84 billion in FDI, a testament to investor confidence in India’s growth trajectory. Additionally, he unveiled the Prime Minister Ghati Shakti, an innovative logistics planning platform being rolled out by DPIIT. This digital infrastructure tool will revolutionise planning by integrating various elements, including physical infrastructure, road and pipeline networks, industrial and warehousing units. Secretary Singh expressed his intent to offer this unique platform to other countries facing similar challenges.
Shri Singh also informed that India’s commitment to infrastructure development is evident, with plans to construct approximately 30 kilometres of roads per day and build 72 new airports by 2025. The government’s holistic approach aims to create a favourable environment for businesses to thrive, ensuring sustainable economic growth.
Shri Saket Dalmia, President of PHDCCI, highlighted the chamber’s impressive track record, with over 1,50,000 companies across 20 states and four union territories. With a history of 118 years, the chamber has established itself as a hub of expertise, providing a strong foundation for fostering growth. Furthermore, Shri Dalmia shared the exciting news that the chamber has recently welcomed the Startup Committee and the new H-Tech-driven Businesses Committee into its fold. This inclusion signifies the recognition of these emerging leaders and their role in shaping the future of industries. As the journey continues, there is great anticipation for the insights our esteemed guest will bring regarding industry-government collaboration, groundbreaking ideas, and bridging the gap between traditional and innovative business practices.