The Signal (weekly highlights)

PLI scheme generates investment commitments worth Rs. 2.3 tn

The Centre’s production-linked incentive (PLI) scheme, which aims to encourage domestic manufacturing, has generated investment commitments worth Rs.2.3 trillion across 14 sectors.

Among others, automobile & auto components, advanced chemistry cell batteries and specialty steel & high-efficiency solar panels are sectors that have attracted the maximum interest. The total outlay for the scheme across the 14 sectors is Rs.1.9 trillion. The programme is expected to generate additional output worth Rs.28.1 trillion and 6.4 million new jobs over the next five years.

Centre’s CPSE capex up by 21% YoY in FY22

The combined capital expenditure (capex) by 40-odd large central public-sector enterprises (CPSEs) and departmental undertakings rose by 21 per cent year-on-year to Rs.5.6 trillion in 2021-22.

Capex by these state-run entities, each with annual investment budget of more than Rs.5 billion, was 97 per cent of their aggregate capital expenditure target of Rs.5.8 trillion for 2021-22. During the fiscal, the National Highways Authority of India (NHAI) was the largest investor by deploying capex of about Rs.1.6 trillion, 21 per cent more than its annual target of Rs.1.3 trillion and 26 per cent more than a year ago.

WPI inflation rises to 14.5% in March 2022

Wholesale price inflation, measured by the WPI, rose to 14.5 per cent in March 2022 from 13.1 per cent in February 2022. The rise was seen across all three major sub-groups of the WPI. Inflation in the manufactured products group rose to 10.7 per cent in March 2022 from 9.8 per cent in the preceding month.

The high rate of inflation in March, 2022 is primarily due to rise in prices of crude petroleum and natural gas, mineral oils, basic metals, etc owing to disruption in the global supply chain caused by the Russia-Ukraine conflict

Exports up by 37% during 1-14 April 2022

India’s merchandise exports rose year-on-year by 37 per cent to USD 18.8 billion during 1-14 April 2022, as per preliminary data from the Ministry of Commerce & Industry.

The key sectors that recorded healthy growth in exports include petroleum, gems and jewellery. Exports during 1-14 April 2021 stood at USD 13.72 billion. Meanwhile, the country’s imports rose by about 12.2 per cent to USD 25.8 billion during 1-14 April 2022.

GST Council likely to do away with 5% rate

The Goods and Services Tax (GST) Council is expected to consider a proposal to do away with the five per cent slab by moving some goods of mass consumption to three per cent and the remaining to eight per cent categories, at its next meeting in May 2022.

This has come after most states have come on board to raise revenue so as to not depend on Centre for compensation. At present, GST is a four-tier structure of 5, 12, 18 and 28 per cent. Besides, gold and gold jewellery attract three per cent tax. There is an exempt list of items like unbranded and unpacked

Fisdom Research