The government’s Production Linked Incentive (PLI) scheme has the potential to add nearly four per cent of Gross Domestic Product (GDP) per annum in terms of incremental annual revenues, states Emkay Investment Managers Ltd (EIML). The scheme is aimed to provide nearly ₹2.4 lakh crore worth of incentives over the next 5 years.
Manufacturing to draw more investment
Other findings suggest that the manufacturing sector will reclaim its position against the services sector in terms of its GDP contribution. According to Emkay analysis, manufacturing companies are adding capacities due to the robust returns.
“We expect the manufacturing sector to become the mainstream investment theme. In the medium, to long term, and a higher allocation of investment exposure from the funds. After a long hiatus, manufacturing companies are likely to be the wealth creators and leaders of the next rally in the markets,” said Vikaas M Sachdeva, CEO, Emkay Investment Managers Ltd.
The manufacturing sector has witnessed the highest registration in the last seven years. Additionally, the number of environmental clearances sought and granted was the highest ever i.e.– 10 times of FY15.
Sachin Shah, Fund Manager, Emkay Investment Managers Ltd said, “The current financial matrix as well the policy support is best suited for the manufacturing companies to outperform the broader markets. This is the right time for the Indian manufacturing companies to make a mark at the international level,”
EIML is the portfolio management services arm of Emkay Global Financial Services held and these remarks were made by EIML leaders at an event to discuss the latest investment strategies and how manufacturing companies are attracting fund flows.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.