Gains from PLI Scheme Should be Durable and Not One-Off: Das

Thursday 23rd September, 2021

Article Details
  • View Image
  • View PDF

RBI GOVERNOR SHAKTIKANTA DAS says Unicorns, schemes like Digital India and the shift to a hybrid financial sector will open up opportunities for future growth Gains from PLI Scheme Should be Durable and Not Our Bureav Mumbai: Productivity-linked schemes, pushtowardgreenenergy, and a vast pool of information technology talent could be at the vanguard of growth revival as India clambers out of the Covid sinkhole, central bank governor Shaktikanta Das said. Mushrooming of Unicorns, programmes like Digital India and the gradual shift to a hybrid financial sector provide opportunities for future growth, but at the same time there is a need to reskill millions and the industry should aim at lifting the fortunes of millions of poor who have been hurt by Covid. "Leveraging technology in implementing government schemes, training and skill development programme for the unemployed, promoting women friendly work atmosphere and supporting education of the poor and marginalized sections would be areas of foIncome Na . andjob ' creation with digitalisation FE tion can bring about anew ageof prosperity for alarge numi ber of people hd cus AS we embark on our journey beyond COVID-19," Governor Das said in his address at the meeting of the All India Management Association. "Income and job creation with digitalisation and innovation can bring about a new age of prosperity for a large number of people." Policy makers across the board are worried about the economic wreckagethat has led to widening of disparities and income inequality. While policy actions are getting tuned to address the weaker segments, there is an increasing belief that the transformation in behavior caused by the pandemic could make livelihood difficult forthe millions. Off: Das "TheProduction Linked Incentive(PLDscheme announced by the government for certain sectors is an important initiative to boost the manufacturing sector," said Das. "It is necessary that the sectorsand companies which benefit from this scheme utilise this opportunity to further improve their efficiency and competitiveness. In other words, the gains from the scheme should be durable and not one off." A recent RBI study pointed out that banks and financial institutions sanctioned only 220 project proposals of the private companles during 2020-21, a record low in recent years. The total cost of projects sanctioned too declined sharply to Rs 75,558 crore in 202021from Rs 1,75,830 crore in 2019-20. However, some high there are signs of improvement in capital expenses and one such indicator is pick up in FDI inflows. FDI equity inflows doubled to$20.8 billion during April-July'2021 from $10 billion a year ago.