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What TV doesn't, print can't; we deliver.
The Indian government has announced a $5 billion incentive package under the Production Linked Incentive (PLI) scheme, targeting key sectors such as electronics, semiconductors, and renewable energy.
NEW DELHI: India has emerged as a pivotal hub for Global Capability Centers (GCCs), hosting over 1,500 centres operated by 1,200 multinational corporations (MNCs). These centres employ more than 1.5 million professionals and contribute significantly to India’s IT-BPM industry, valued at over USD 194 billion in FY24. According to Nasscom, GCCs in India are expected to grow at a 12-15% CAGR, driven by a skilled workforce and cost advantages of up to 60% compared to Western markets.
A report by Elara Capital highlights recent developments across various sectors, underscoring India’s continued position as a global economic powerhouse.
The Indian government has announced a $5 billion incentive package under the Production Linked Incentive (PLI) scheme, targeting key sectors such as electronics, semiconductors, and renewable energy. Since its inception, the PLI scheme has led to an investment commitment of over INR 2.5 trillion and is projected to create 6 million jobs by FY30. For instance, India’s electronics manufacturing market alone grew from USD 37 billion in 2015-16 to USD 87 billion in 2022-23, reflecting a significant upward trajectory.
India’s tractor sales are expected to grow by 8-10% during the festive season of 2024, amounting to approximately 970,000 units by the end of FY25, according to industry experts. This growth is attributed to a 7% increase in rural incomes, favourable Kharif harvests, and agriculture credit surpassing INR 20 trillion, reflecting strong rural demand. In 2023, tractor sales stood at 875,000 units, marking India as the largest tractor market globally.
HDFC Bank, India’s largest private-sector lender, has announced the sale of INR 120 billion in car loans, reflecting its strategy to optimize its credit portfolio. The auto loan segment, which grew by 15% YoY in Q2 FY25, constitutes 18% of the bank’s total retail loans, showcasing the strong demand in India’s automobile sector.
Aurobindo Pharma has declared plans to expand its portfolio by developing respiratory drugs, targeting a market valued at over USD 45 billion globally. India, which supplies 20% of the world’s generics, has seen pharmaceutical exports grow by 6% YoY, reaching USD 27 billion in FY24. This initiative is expected to bolster India’s leadership in the global pharma space, particularly in high-demand therapeutic areas.
The Indian economy has shown resilience, with retail inflation moderating to 4.3% in October 2024, the lowest in 20 months, driven by falling prices of essential commodities. Tomato prices, for example, have declined by 15% month-on-month, while onion prices, now averaging INR 56/kg, have stabilized after government intervention releasing 150,000 tonnes from buffer stocks. Additionally, India’s GDP is projected to grow by 6.3% in FY25, supported by strong domestic demand and easing supply-chain constraints.
