India’s strategic investments in infrastructure and expanded production linked incentive (PLI) scheme has fostered growth and innovation, said Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT).
On Thursday, Singh unveiled the country’s significant investments in infrastructure development, along with the expansion of the PLI scheme for labour-intensive sectors.
While speaking at an event organised by the PHD Chambers of Commerce and Industry (PHDCCI), Singh emphasised 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 per cent 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,” he mentioned.
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 per cent.
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 Rs 1.97 lakh crore.
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.
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 USD 84 billion in FDI, a testament to investor confidence in India’s growth trajectory, he asserted.
Additionally, he unveiled 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,” Singh said.
