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What is the story about?
India needs to maintain and accelerate its economic momentum beyond the 7.8% growth recorded in the latest quarter, with a focus on manufacturing, jobs and improving the ease and speed of doing business, said R Mukundan, President, CII and MD & CEO, Tata Chemicals.
Mukundan said “In fact, accelerating the momentum beyond 7.8% into 8%, closer to 9%, is a imperative which India needs to focus on. In that, the main levers are looking at both internally and externally. Internally, what we need to continue to do is ease of doing business and cost of doing business and, more importantly, I have been highlighting the speed of doing business.”
According to him, the benefits of reforms undertaken at the central level need to be implemented consistently across states and cities.
On the Production Linked Incentive (PLI) scheme, Mukundan said government support remains important in the early stages as it helps industries establish market linkages and reduce investment risks. However, once sectors achieve scale and become financially sustainable, the level of support can be reduced.
He also pointed to differences in the impact of PLI across sectors, suggesting that the scheme may need to be reworked in areas where it has not delivered the same results as in electronics.
Meanwhile, Mukundan said Indian companies have relatively strong balance sheets, which should provide some cushion amid elevated commodity and energy costs. The bigger challenge, he said, is deciding how much of the higher input costs can be absorbed by companies and how much can be passed on to consumers without hurting demand.
On UPI and the debate around Merchant Discount Rate (MDR), he called for greater engagement among stakeholders to balance the need for investment in security and expansion with the objective of keeping digital payments cost-effective.
For the entire discussion, watch the accompanying video
Mukundan said “In fact, accelerating the momentum beyond 7.8% into 8%, closer to 9%, is a imperative which India needs to focus on. In that, the main levers are looking at both internally and externally. Internally, what we need to continue to do is ease of doing business and cost of doing business and, more importantly, I have been highlighting the speed of doing business.”
According to him, the benefits of reforms undertaken at the central level need to be implemented consistently across states and cities.
On the Production Linked Incentive (PLI) scheme, Mukundan said government support remains important in the early stages as it helps industries establish market linkages and reduce investment risks. However, once sectors achieve scale and become financially sustainable, the level of support can be reduced.
He also pointed to differences in the impact of PLI across sectors, suggesting that the scheme may need to be reworked in areas where it has not delivered the same results as in electronics.
Meanwhile, Mukundan said Indian companies have relatively strong balance sheets, which should provide some cushion amid elevated commodity and energy costs. The bigger challenge, he said, is deciding how much of the higher input costs can be absorbed by companies and how much can be passed on to consumers without hurting demand.
On UPI and the debate around Merchant Discount Rate (MDR), he called for greater engagement among stakeholders to balance the need for investment in security and expansion with the objective of keeping digital payments cost-effective.
For the entire discussion, watch the accompanying video
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