Weekly News 12 - 16 February 2024

Monday, 12 February 2024 (Business Standard) Investment push slows down in key PLI sectors 

Investment in key sectors under the Production-Linked Incentive (PLI) scheme, aimed at boosting domestic manufacturing, is showing signs of slowing down just a year after its launch. According to a review report by an inter-ministerial panel, investment growth is notably sluggish in textiles, information technology hardware, and speciality steel during this financial year. While the government had anticipated investment worth ₹49,682 crore in FY24, only around 61.8% of this target has been achieved across all 14 sectors in the first nine months of the fiscal year. Progress has also been lackluster in medical devices, automobiles, auto components, ACC batteries, and white goods sectors. 

Despite some sectors performing well, such as mobile phones, bulk drugs, pharmaceuticals, telecom, drones, and food processing, others are struggling to meet investment, production/sales, and employment targets set by the government. The PLI scheme, with a total investment of ₹1.97 trillion, aims to bolster India's manufacturing capabilities, enhance cost competitiveness, create jobs, reduce dependency on imports, and boost exports across various sectors. While investment under the scheme has exceeded ₹21.03 trillion to date and led to substantial production and employment, challenges remain in certain sectors to achieve their targets. 

Tuesday, 13 February 2024 (mint) 'Incredible India push needs a digital revamp’ 

Despite India's remarkable economic growth, its tourism sector has not experienced a corresponding boom, as highlighted by former Niti Aayog CEO Amitabh Kant. Speaking at the Hotel Association of India's annual event, Kant emphasized the need for a "dynamic and digital" overhaul of the Incredible India campaign to attract foreign visitors. While domestic travel has seen a resurgence during the pandemic, Kant stressed the importance of increasing foreign tourist arrivals to enhance the sector's value. He proposed focusing on developing five key states as tourism hubs and leveraging private sector expertise, particularly in the MICE segment, where India currently has minimal market share. 

Kant underscored the significance of extending industry status and benefits to the tourism sector across states, emphasizing its role as a job creator. He urged both state and central governments to prioritize tourism as an industry, citing the substantial employment opportunities it offers. Kant expressed optimism that overall economic growth and infrastructure development, including the construction of new airports, will naturally bolster the tourism sector's success, alleviating concerns about the budgetary allocation to the Ministry of Tourism. He emphasized that with the expansion of airport infrastructure, tourism will experience organic growth, contributing to India's economic prosperity. 

Wednesday, 14 February 2024 (The Economic Times) Rooftop Solar Scheme Gets New Name, and रु75 cr Allocation 

Prime Minister Narendra Modi unveiled the PM Surya Ghar Muft Bijli Yojana rooftop solar scheme, committing an investment exceeding 75,000 crores. Originally introduced as the Pradhan Mantri Suryodaya Yojana, the initiative aims to illuminate 10 million households, offering free electricity of up to 300 units per month. With significant subsidies deposited directly into consumers' bank accounts and concessional bank loans, the scheme ensures no financial burden on the people. To enhance its reach, urban local bodies and panchayats will be incentivized to promote rooftop solar installations within their jurisdictions. 

Modi emphasized the scheme's potential to boost income, reduce power bills, and generate employment, with the government aiming to increase subsidies for rooftop solar projects to 60% of the capital cost for lower and lower-middle-class households. The announcement follows the government's commitment to sustainable development and people's well-being. By integrating all stakeholders into a National Online Portal, the initiative aims to streamline processes and ensure convenience. 

Thursday, 15 February 2024 (mint) India, Greece to join hands for defence, shipping 

India and Greece, having recently elevated their bilateral relationship to a strategic partnership, are now intensifying collaboration in defense and shipping. Discussions are underway regarding defense sales from India to Greece, aligning with India's ambition to triple defense exports to $5 billion in the coming years. Moreover, both nations are exploring cooperation in shipping and ship modernization, with India considering investment opportunities in Greek ports and inviting Greek involvement in its Make-in-India program for shipping. Despite queries to relevant authorities remaining unanswered, this initiative follows Prime Minister Narendra Modi's visit to Greece last year, signaling a renewed commitment to deepen bilateral engagements across various sectors. 

The focus on Greece forms part of India's broader strategy to strengthen ties with Mediterranean and central European nations, aiming to enhance trade and connectivity with Europe. Given Greece's significant presence in global merchant shipping, with its shipowners controlling a substantial portion of the world's shipping fleet, India sees potential in fostering collaboration to modernize its shipping vessels. Greece's expertise in this sector presents an opportunity for India to attract investments and advance maritime trade capabilities, further bolstering bilateral relations between the two countries. 

Friday, 16 February 2024 (Financial Express) India and UK hold high-level talks to address FTA issues 

Efforts are underway to resolve differences in the India-UK free trade agreement as negotiations progress, with a focus on safeguarding India's interests, particularly in agriculture and goods under the Production Linked Incentive (PLI) scheme. Commerce Secretary Sunil Barthwal emphasized the importance of ensuring commercial gains for India while protecting the interests of its farmers. Bilateral trade between India and the UK has seen an increase, reaching $20.36 billion in 2022-23 from $17.5 billion the previous year. Additionally, negotiations on an investment treaty are ongoing, with both agreements expected to be signed simultaneously. 

Meanwhile, discussions continue on the India-European Union (EU) free trade agreement, with the seventh round scheduled for February 19-23 in New Delhi. The negotiations, restarted in June 2022 after an eight-year hiatus, cover 23 chapters and policy areas. In other developments, progress is being made on the Indo-Pacific Economic Framework for Prosperity (IPEF), with legal scrubbing underway for agreements promoting a clean and fair economy. The supply chain resilience pact is set to take effect from February 24, with action plans being developed to optimize participation in institutional structures. Additionally, India and Peru concluded their sixth round of negotiations on a proposed FTA, with the seventh round expected in April, aiming to address outstanding issues on goods and services.