Government’s Intent to Provide Policy Clarity, Push Investment
STORIES, ANALYSES, EXPERT VIEWS
The government appears determined to present a more investment-friendly policy environment. This is obvious for the series of policy announcements over the past few weeks. Beginning with the move to bury the much reviled retrospective tax once and for all, to now announcing measures aimed at alleviating the distress in the telecom sector, the Indian Express writes “the policies signal an attempt by the government to rectify administrative and judicial decisions that were seen as obstacles by the corporate sector. Equally significant, when seen through this lens, was the tweaking of the Air India bid conditions to signal the government’s firm commitment to privatisation. As is Thursday’s announcement of a government guarantee for the bad bank, and the recent announcements of sector-wise production-linked incentive schemes (PLIs) meant to encourage fresh investments in the country as the economy recovers from the fallout of the Covid pandemic.”
A PLI scheme for automobiles, auto-component and drone manufacturers with a budgetary outlay of Rs 26,058 crore — in line with the broader push of the government to boost domestic manufacturing, and encourage exports.
The intent behind each of these policy measures is to clear the hurdles/obstacles for the corporate sector, and provide greater policy clarity and certainty. When seen together, these seemingly disparate policy measures, also indicate a more determined push by the government to facilitate private sector investments in the country.
See details of the proposals in below stories.
