PremiumThe PLI schemes for Champion Sectors announced by the Central government are a step in the right direction and can unlock potential to turn India into a manufacturing powerhouse according to Alain Spohr, Managing Director, Alstom India & South Asia.
On the upcoming Union Budget, he said that the Finance Minister should continue with ease of doing business reforms. A crucial prerequisite to spur growth will be transparent, predictable, and competitive public policies. With particular focus on fair and efficient support during project execution.
Alain Spohr said, "Government should consider Railways as a Champion Sector and devise targeted recovery plans which can further incentivise foreign investments and provide a fillip to the Make-in-India initiative. Moreover, export incentives as part of the new Foreign Trade Policy can also help India integrate with global supply chains and leverage its competitive advantage."
The government has approved PLI scheme for 10 key sectors, including telecom, automobiles and pharmaceuticals, taking the total outlay for such incentives to nearly ₹2 lakh crore over a five-year period.
“The COVID-19 pandemic made 2020 a challenging year by disrupting everything. It triggered a nationwide lockdown which displaced labour, disrupted supply chains and stunted domestic manufacturing. All this significantly impacted economic activity, but the government quickly launched effective measures to salvage India from the lows of 2020 at a remarkable pace. Businesses have adapted to the new normal, become resilient and agile for long-term survival," he added.
He further said,"The Government launched the ‘Atmanirbhar Bharat Abhiyan’ (Mission Self-Reliant India) to nurture and build autonomous and sustainable sourcing and supply chain capabilities, which has been welcomed by all. Several other initiatives to boost infrastructure development, such as the National Infrastructure Pipeline, roll-out of Private Trains and Regional Rapid Transit Systems are likely to boost private participation and create more avenues for collaboration in the future."
Addressing challenges in project execution such as, timely payments, efficient, fast and fair solving of execution related issues, and most importantly ensuring compliance of all players with localization requirements. He also urged the government to ensure a level-playing field between original domestic companies and foreign companies who have demonstrated genuine and sincere efforts to develop domestic capacities and capabilities, through significant industrial investments and robust transfer of technologies.
In order improve competitiveness, while attracting to India investments in technology and innovation in a sustainable way and protecting the basics of Government procurement policies. This will further be imperative to improve competitiveness, while attracting towards the country’s investments in technology and innovation, in a sustainable way and protecting the basics of Government Procurement policies.
