Source: Business Today
A significant reduction in the import of raw materials in the pharmaceutical sector is one of the most notable achievements under the Production Linked Incentive (PLI) scheme, the government said in a document, titled Indian Economy: A Review, written by V. Anantha Nageswaran, Chief Economic Adviser, Ministry of Finance.
The 74-page document presented on Tuesday was a departure from the tradition of releasing the Economic Survey, which may now be released before the full Budget after general elections. The review outlined the nation’s economic trajectory over the past decade and forecasts for the future.
The document outlined achievements in healthcare and the ‘Make in India’ initiative, particularly the success of the PLI scheme in spurring domestic manufacturing and exports across various sectors.
With an investment outlay of Rs 1.97 lakh crore, the PLI scheme has spurred significant production, generating over Rs 8.7 lakh crore in sales and creating employment opportunities for more than 700,000 individuals, Nageswaran said in the document. “The PLI scheme witnessed exports exceeding Rs 3.4 lakh crore, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom and networking products,” he said.
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The review also highlighted structural reforms and digital infrastructure development as key drivers of economic growth, citing examples such as the Aarogya Setu and CoWin apps that aided pandemic response efforts and boosted consumption.
Simultaneously, the healthcare sector has also undergone a digital revolution, driven by initiatives like the Aarogya Setu and CoWin apps. These digital platforms played a pivotal role in combating the pandemic, enabling efficient tracking of virus spread and facilitating mass vaccination drives, Nageswaran said.
“Digitalization directly helped to increase private consumption, both during the pre and post-pandemic phases,” he said, adding that the adoption of digital solutions has also revolutionized healthcare delivery, with virtual consultations, digital payments, and e-grocery shopping witnessing a significant uptick, especially during mobility restrictions.
Moreover, government healthcare initiatives such as Ayushman Bharat and e-Sanjeevani OPD services have made healthcare more accessible and affordable to millions. Nageswaran highlighted, “With over 30.3 crore Ayushman Bharat cards issued and 17.4 crore patients availing of e-Sanjeevani OPD services, the impact of these initiatives on public health outcomes is undeniable.” Additionally, the establishment of 10,000 Janaushadhi Kendras selling medicines at reduced rates has further enhanced access to affordable healthcare, he said.
In the document, Nageswaran also emphasized that the Indian economy is set to achieve growth rates of 7% or higher for FY24 and potentially FY25, marking a significant milestone post-pandemic. “It now appears very likely that the Indian economy will achieve a growth rate at or above 7% for FY24, and some predict it will achieve another year of 7% real growth in FY25 as well. If the prognosis for FY25 turns out to be right, that will mark the fourth year post-pandemic that the Indian economy will have grown at or over 7%,” said Nageswaran.
