Date: 31st May 2022 | Publication: Ausbiz
How India is growing its manufacturing
Foreign direct investments into India have doubled in the eight years since the Modhi government came to power, and this has been helped along by India’s production linked incentive schemes which were introduced in March and November 2020. Mugunthan Siva from India Avenue Investment Management joined us this afternoon to take us through whether said schemes have worked so far, and he is of the opinion that it is going well. The schemes aim to make India competitive in manufacturing, through seeking foreign investment and local partnership – and helps India move up the value chain with its exports, specifically around value-added exports rather than leveraging off the lower cost of labour. Automobiles and components as well as pharmaceutical manufacturing have been beneficiaries of these schemes through forgein and local investment and with favourable taxes.