The recent “Indian Economy – A Review” released by the Ministry of Finance’s Economic Affairs Department showed a significant surge in industrial growth and indicated that an annual growth trajectory of 8% is likely for the three-year period ending March 2024.

The report attributes this growth to the government’s strategic initiatives, with special emphasis on ‘Make in India’, the Production-Linked Incentive (PLI) scheme, progress in the MSME sector, open networks for digital commerce and achievements in the large-scale e-commerce sector. Electronics manufacturing.

Make in India and PLI

The report said that under the “Make in India” initiative, the government has taken targeted measures to strengthen domestic manufacturing and enhance self-reliance in various industries.

The key driver of this effort is the PLI program, which covers 14 sectors. The scheme, costing Rs 197 crore, has approved 746 applications as of December 2023, benefiting 176 MSMEs.

Notable results include investments of over Rs 107 crore, production/sales of Rs 870 crore and creation of over 700,000 jobs. Exports under the scheme have exceeded Rs 340 crore, with large electronics manufacturing, pharmaceuticals, food processing and telecom and networking products contributing significantly.

The report states that the major achievements of the PLI scheme include substantial value addition in the mobile manufacturing industry, successful import substitution in the telecommunications sector, substantial reduction in raw material imports in the pharmaceutical industry, increased turnover in the drone industry and increased domestic procurement of raw materials. Materials in food processing.

supporting measures

The report highlights the increasing vitality and vitality of micro, small and medium enterprises (MSMEs), driven by government support measures.

The Union Budget for FY24 facilitates timely payments to MSMEs by allowing tax deduction only at the time of payment. The amendments to the Micro, Small and Medium Enterprises Development Act require payment of interest on delayed payments by MSMEs to promote their financial health. Udyam Portal and Udyam Assisted Platform (UAP) have simplified information about MSMEs, the number of MSMEs registered on Udyam Portal is 2.24 billion and on UAP is 120 million.

The PM Vishwakarma scheme, launched in September 2023 to provide comprehensive support to artisans and artisans, attracted 4.88 million registrations by the end of December 2023.

In addition, the report states that in November 2023, the Digital Commerce Open Network recorded more than 6.3 million transactions. Regulatory reforms, including the decriminalization of 3,600 compliance items, have significantly improved the ease of doing business. The Jan Vishwas Amendment Bill 2023 aims to decriminalize 183 provisions in 42 Central Acts and further improve the business environment.

Similarly, the report states that an impressive Rs 2,598 crore has been disbursed to non-corporate, non-farm small and micro enterprises under the Pradhan Mantri Mudra Yojana. The credit guarantee limit of the Credit Guarantee Fund Trust for Small and Micro Enterprises (CGTMSE) has been significantly increased from Rs 20 million in April 2000 to Rs 50 million. Guarantees under the Emergency Credit Line Guarantee Scheme (ECLGS) are part of the scheme. The Aatmanirbhar Bharat package has reached Rs 240 crore.

The Unified Logistics Interface Platform (ULIP), the cornerstone of national logistics policy, has been seamlessly integrated with 35 systems in eight different ministries and attracted 699 industry players, the report said.

It also cited a report by Bernstein, which highlighted that after the implementation of the GST, logistics costs for trucks were significantly reduced and the distance traveled per day increased. Notably, the government’s strong push for capital expenditure, coupled with measures to increase domestic steel production and focus on affordable housing, has led to the construction industry registering an annual growth rate of 12% from FY2022 to FY2024.