A pro-growth turn in government policy

The growth impact of PLI schemes could start showing up in FY22

economic recovery, reforms, policy, policies, revival, economy, growth, gdp, market

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illustration: Binay Sinha

Neelkanth Mishra

6 min read Last Updated : Feb 08 2021 | 10:41 PM IST

Total central government spending in FY22 should be unchanged from the government’s revised numbers for FY21, with the pandemic-triggered allocations to save lives and firms replaced by allocations to water and sanitation, affordable housing and vaccinations. Even though these have stronger and lasting effects on growth, will they be sufficient to bring the economy to its pre-pandemic path? Missing from this debate is the growth impact from the production-linked incentive (PLI) schemes announced in mid-November for 10 new sectors.

They were the first sign of a pro-growth turn in government policy. Three PLI schemes had been announced before that, in handsets,

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : Indian Economy Budget 2021 PLI scheme GDP growth Economic reforms manufacturing Indian companies

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