Government’s PLI (Production Linked Incentive) scheme has drawn greater attention as global mobile manufacturers controlling 60% of the market had applied and have received approval under the scheme. These companies have, together, projected production of mobile phones worth over Rs 10 lakh crore cumulatively over next five years. About 60% of this would be for … Continue reading PLI (Production Linked Incentives) Scheme – Going Beyond Electronic Goods Sector
The passage of farm bills recently has brought focus on the agriculture sector. While agriculture, as a whole, remains an under-developed sector, the inter-state variation is even starker. This is reflected in the ‘marketed surplus’ of different states. Marketed surplus is the quantity that farmer sells in the market after keeping aside the produce for … Continue reading Agriculture Sector – ‘Marketed Surplus’ and Other Issues..
India’s persistent deficit on current account or current account deficit (CAD) is financed by the flow on capital account which forms the other part of international balance of payment. Some of the major elements of this are FDI, FII, ECB etc. If there is a shortage on this count too, there will be a reduction … Continue reading Capital Flow – FDI, FII and the Rest
India recorded merchandise exports of $320 bn in FY20 against imports of $474 bn, leading to trade deficit of $154 bn. The surplus on ‘invisibles’ account was $132 bn, reducing the current account deficit to $32 bn. Invisibles as a category comprises of large number of sub-groups. Invisibles comprise of three segments – Services, Transfers … Continue reading India’s International Trade – Understanding the Constituents (Part II)
India’s performance on international trade front, recording persistent deficit, is possibly the reason behind government’s push at Atma Nirbhar Bharat (Self-reliant India). The objective is to generate sufficient foreign exchange to meet our needs without creating future liability. An achievement of sorts on this was generation of current account surplus, a reasonable $20 billion, in … Continue reading India’s International Trade – Understanding the Constituents (Part I)