Goldman Sachs, in its latest industrial tracker, highlighted significant contributions of the Production-Linked Incentive (PLI) schemes and mixed trends across key industrial indicators. Here are the key insights:
PLI Scheme Impact
- Incentives Disbursed: PLI schemes disbursed incentives worth 62% of government estimates for FY24.
- Economic Gains: As of August 2024, the schemes have helped achieve $150 billion in incremental sales and $48 billion in exports, showcasing their effectiveness in boosting industrial output.
- Future Potential: Over 720 companies participating in the PLI schemes are projected to drive incremental revenue of $459 billion over the next 5-6 years.
Industrial Indicators
- Activity Trends:
- Mixed activity trends were observed; however, year-on-year (YoY) growth showed improvement compared to October.
- Tile export values in USD from India declined 18% YoY FYTD, indicating pressures in specific export categories.
- Engineering goods exports exhibited strong performance, growing 38% YoY.
- Transportation and Logistics:
- Air traffic demonstrated resilience, with a growth of 11.8% YoY in November.
- Container volume growth slowed, and port volumes declined by 5% YoY in November, reflecting a dip in international trade momentum.
- Other Key Metrics:
- Marginal improvements were noted in rail freight, bitumen, coal sales, and commercial vehicle activity on a YoY basis, signaling gradual recovery in key industrial segments.
Goldman Sachs remains optimistic about the PLI scheme’s potential to further accelerate industrial growth and exports. However, challenges in certain export categories and logistics require close monitoring.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
