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Gains from PLI should be more durable: RBI Governor Shaktikanta Das

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"The Production Linked Incentive (PLI) scheme announced by the government for certain sectors is an important initiative to boost the manufacturing sector" said RBI governor Shaktikanta Das.
The Reserve Bank of India Governor Shaktikanta Das said the industry has to exploit the government's Production Linked Incentive scheme that has been rolled out for various sectors including automobile as industry is still reluctant to invest in creating capacities despite record low interest rates.
"The Production Linked Incentive (PLI) scheme announced by the government for certain sectors is an important initiative to boost the manufacturing sector" said
RBI governor Shaktikanta Das at the National Management Convention of the All India Management Association on Wednesday. "It is necessary that the sectors and 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 companies during 2020-21,a record low in the recent years. The total cost of projects sanctioned too declined sharply to Rs 75,558 crore in 2020-21 from Rs 1,75,830 crore in 2019-20. However, some high there are signs of improvement in Capex 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.