ups and downs second wave of pandemic, with the gradual lifting of restrictions in states, has prompted reforms in not only many economic indicators But it also led to a much-awaited investment revival. Data from investment monitoring firm Projects Today shows that investment commitments And indicators of real capital expenditure on the ground posted strong sequential growth in the July-September quarter after a weak Q1. Even though the increased central government infrastructure spending is partly attributable, this increase is surprising for another reason – new investments in the first half of 2021-22 have now been pushed back to the pre-COVID year of 2019-20. higher in comparison, with private capital outlay of around 49. % to ₹4.87 lakh crore. Whether this growth rate is sustained or not, the implementation of the “PLI” scheme to boost manufacturing investment in India is expected to spur more investment in textiles, pharma, electronics in the second half of this year and 2022-23. Critics might call it a retro-style import substitution push, but if it manages to sway some investments from Vietnam, Cambodia and now, Bangladesh, at a time when the world is looking to reduce its China dependence, the effort is worth. Preliminary evidence suggests that some investors have been converted.
However, prompt implementation is essential to reap the expected benefits – of the 13 sectors for which PLIs have been announced, nine have been notified so far, and others must be written off expeditiously, lest a global Investors choose another destination. The handing over of Air India to the Tata group – the public sector firm’s first outright sale in nearly two decades – would instill some much-needed confidence in the government’s much-anticipated stance that it has no business in the business. With its efforts to repair some of the damage done to the long-stalled telecom sector and eventually correct Utsav’s folly of pursuing retrospective tax cases, which he termed ‘tax terrorism’ while in opposition, the government Making the right noise. These decisions are yet to be swiftly taken to their respective logical conclusions for a lasting change in perceptions and consequences on the ground. Furthermore, as it seeks to enhance economic partnership agreements or ties with major markets such as the European Union, the US and the UK, India has to invest some of this energy to improve its image and compliance on key socio-economic parameters. need to invest. ‘Rule of Law’, avoiding new mistakes and heavy-handed rules like the much-awaited draft norms for e-commerce. In a world where capital is increasingly being influenced by environmental, social and governance standards, these factors require greater policy attention.
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