IMA Insights

The Production-Linked Incentive (PLI) Scheme, launched in 2021-22 as part of the Make in India initiative, aims to strengthen India's manufacturing across key sectors. With an allocation of Rs 109 billion, the food processing PLI scheme leverages India’s agricultural resources to boost production, exports and reduce import dependency. It incentivises incremental revenue and capital expenditure, driving investments and capacity creation. 

We recently interviewed several member-companies that are participating in the food processing PLI scheme, to better understand their experience with the programme and any challenges they may be facing. This podcast summarises our findings, which hold lessons for similar programmes across sectors. 

Cybersecurity risks continue to rise, with a reported 20% of Indian users falling victim to cyber threats in the first quarter of 2024 alone and several high-profile cases recently coming to light. Scams are becoming more sophisticated, targeting even well-informed individuals. At the same time, with rising penalties for non-compliance, companies are under pressure to tighten their defences. 

At a recent cross-Forum online session, renowned cyber-security expert Amit Dubey shed light on the current cybersecurity landscape and outlined some best practices. This podcast summarises these discussions.

Donald Trump’s mandate, coupled with the fact that the Republicans are expected to control both the Senate and House, will give him ample sway over Washington. The fear propaganda tom-tommed by the Democratic party and the liberal media on Trump’s operating style, intended to raise alarm, fell to the wayside. 

In his previous term, he cut taxes and deregulated the economy. The momentum of growth that America witnessed over the past four years is largely accountable to his policies. Often forgotten the fact that Mr Trump funded research for covid-19 vaccines, even if he dithered in urging Americans to take them.  He displayed potency in his dealings with China something that the Obama administration failed to do. The Abraham accords that brought about diplomatic engagement between Israel and the Sunni monarchies, is the critical reason why the middle-east has as yet survived a bloody conflict. 

Mr Trump will cut domestic taxes and impose import duties on countries with whom America suffers a serious trade imbalance. That might affect Indian exports and visas for IT companies and they need to be prepared. This podcast explains. 

Today’s world economy is marked by volatile financial markets, high interest rates and geopolitical tensions. Both the global and the Indian economy face heightened uncertainty as market fluctuations and policy shifts redefine economic interactions. 

At recent India CEO Forum sessions in Delhi and Mumbai, Adit Jain, IMA’s Chairman and Editorial Director, highlighted some key economic risks and opportunities, emphasising the need for strategic planning to navigate market volatility and geopolitical challenges. This podcast summarises these discussions.

The impact of US monetary policy spreads across the entire global economic architecture. Fund flows to emerging markets are directly proportional to interest rate differentials. This is logical, as investors seeking higher returns, move funds out of the United States. More recently, the Reserve Bank of India defied market hopes, leaving interest rates unchanged. Logically, therefore, we should expect greater stability in the value of the rupee, as in the values of the other emerging market currencies. The half per cent point reduction now places the Fed fund rate to be between 4.75% and 5%. The shift in the Fed’s stance towards monetary easing, suggests that inflation is firmly under control, or so the central bank would like to believe. 

This podcast explains. 

Sri Lankans, exasperated with corruption and crony capitalism amongst the ruling and business elite, voted for fundamental change. This constituted the basis of the support that drove the victory of Anura Kumara Dissanayake, an outsider from a Marxist political party, in the recently concluded presidential elections.  Mr Dissanayake promised to renegotiate the terms of the IMF bailout, eliminate corruption and bring back money siphoned offshore by the previous ruling family – the Rajapaksa. Despite these endearing promises, Mr Dissanayake’s ability to deliver is either limited or completely lacking.

Clearly, India may have been better-off with a Premadasa victory, as relationships with him and his party are believed to be strong. Be that as it may, Mr Dissanayake may quickly discover that things are quite different when you are in government and actually have to make compromises vis-a vis as an activist. 

This podcast explains. 

IMA recently published its ‘Vision 2030: India’s Growth Frontiers’ report, which offers a comprehensive analysis of the factors driving the country’s economic transformation. This report aims to provide strategic insights and recommendations to navigate what is undoubtedly an exciting and dynamic environment, while decoding the nuances of India's economic journey in the years ahead. Given the sheer length of the report, we will be sharing bite-sized extracts from the study over the next few weeks. 

The final episode of this series examines how infrastructure spending has been, and will remain a key driver of growth in the coming years. 

The world economy is today delicately poised. America has avoided the recession that analysts have been projecting for over a year, but recent data indicate that it could be at a tipping point. China, meanwhile, is plainly amidst a slowdown while India continues to grow at a fair clip and the Eurozone presents a mixed bag. Guiding the forward view is a highly volatile geopolitical environment, marked by upcoming US elections, a potentially full-blown war in the Middle East and, for India, a new crisis in Bangladesh. 

At recent joint sessions of the India CEO and CFO Forums across cities, Adit Jain, IMA India’s Chairman and Editorial Director, provided a medium-term view for the world economy, set in the context of an increasingly uncertain global politics. This podcast summarises these discussions.

 IMA recently published its ‘Vision 2030: India’s Growth Frontiers’ report, which offers a comprehensive analysis of the factors driving the country’s economic transformation. This report aims to provide strategic insights and recommendations to navigate what is undoubtedly an exciting and dynamic environment, while decoding the nuances of India's economic journey in the years ahead. Given the sheer length of the report, we will be sharing bite-sized extracts from the study over the next few weeks. 

The third episode of this series looks at the shifting nature of household savings.

It would be fair to say that India has been blessed with some of the world's most scenic places. Himalayan towns with magnificent views of the Great Himalayan Range, or lesser ranges like the Dhauladhars or the Pir Panjal are stunning from any benchmark. 

The tragedy is that over construction of hotels has created concrete monstrosities. The lack of infrastructure leads to clogged roads and rubbish dumped in scenic forests and in the valleys. Over-tourism has deflated the life out of such places. This is a tragedy,  as this podcast explains.