In a conversation with businessline Editor Raghuvir Srinivasan at a breakfast with businessline session, Chief Economic Advisor to the Government of India, V Anantha Nageswaran, said that India’s $3.7 trillion economy is well-positioned to absorb (the expected flood of) capital inflows than ever before, but reforms are necessary.
Nageswaran credits India’s growing absorptive capacity, at least in part, to the production-linked incentive (PLI) scheme for which 14 sectors, including the capital intensive ‘semiconductors’, are eligible.
However, he underscores that to be able to take in capital inflows and not end up with a problem of plenty, India should undertake “granular reforms”, particularly in land and labour, which calls for cooperation of both the Centre and State governments.
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.