Prime Minister Narendra Modi has addressed a virtual meeting to inaugurate Sardhardham Bhavan - a complex for providing training to job aspirants and said, "Covid-19 affected the economies of the entire world, including that of India. But our economy has recovered more strongly than it was halted by the pandemic." PM Modi has indicated that the domestic economy had engaged itself in reforming when the big economies of the world were busy defending themselves during the pandemic.
Aid through PLI scheme
PM on the meet said, "When the global supply chains were disrupted, we introduced the Production Linked Incentive (PLI) scheme to turn new opportunities in favor of India". PLI for Large Scale Electronics Manufacturing was introduced in April 2020 to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking, and Packaging (ATMP) units. The second round of the same PLI scheme was open till March, this year. Later, PLI for IT Hardware was also notified in March 2021. This week, the union government has approved another PLI scheme for 13 sectors, with a total outlay of Rs. 1.97 lakh crore, including Rs. 10,683 crores for the struggling textile segment.
These PLI schemes indeed helped India's manufacturing segment even during the peak period of the pandemic. Additionally, this helped to encourage employment generation to some extends, keeping in mind the poor job data of India. According to available data, "In FY 2020, the scheme benefited around 150 manufacturing units, generating incremental sales of Rs. 46,400 crore (US$ 6,187 million) and showcased the significant potential for additional employment over the next 8 years. As a result, the scheme has been expanded to accommodate an additional 10 'sunrise' sectors to boost the economy and India's self-reliance. This initiative was announced by the Union Finance Minister, Nirmala Sitharaman, during the Atmanirbhar Bharat 3.0 Stimulus Package for FY 2020-21, with an estimated allocation of Rs. 145,980 crore (US$ 20,169 million) spread across five years."
According to the National Statistical Office (NSO), India's GDP increased to 20.1% in the April-June quarter of the current fiscal, indicating a steady economic recovery. However, this growth is an effect of precise a low base in 2020, during the peak of the pandemic. PM Modi added, "We should look upon ourselves as a global economic leader as in the 21st century, India does not have a scarcity of opportunities to make it big."
Global status of economic recovery
Some developed countries of the European Union are now showing better economic improvements than the previous quarter. However, UK's economy grew by only 0.1% in July 2021, while services saw no considerable growth, according to the Office for National Statistics, UK.
On the other hand, exports from China in August rose at a faster-than-expected rate of 25.6% from a year earlier, from 19.3.% gain in July. Imports have also increased 33.1% year-on-year in August. However, in August China's factory activities have expanded at a slower pace, while the services sector slumped into contraction, keeping the GDP growth under pressure.
In the US, according to the Bureau of Economic Analysis, Real GDP increased at an annual rate of 6.6% in the second quarter of 2021 against a 6.3% increase in the first quarter, showing a steady recovery. Although in the last year, the US's economy shrunk significantly, compared to other countries, including India.