GatiShakti, PLI scheme to offset global headwind, boost growth: FinMin

GatiShakti and Production-Linked Incentive Schemes will offset global headwinds and drive investment, resulting in high post-recovery growth for the Indian economy, a Finance Ministry report said.

Geopolitical conflicts and their consequent impact on food, fertiliser and crude oil pri­ces cast a cloud on the growth outlook globally, according to the monthly Economic Review prepared by the ministry.

India may feel its impact although the magnitude will, of course, depend on how long the dislocations in energy and food markets persist in the financial year and how resilient India’s economy is to mitigate the impact, it said, adding transient shocks may not have a big effect on real growth and inflation.

“Offsetting these potential headwinds, GatiShakti and Production Linked Incentive Schemes will drive investment, which will combine with supply chains strengthened by structural reforms taken in the past few years to deliver high post-recovery growth for the Indian economy," it said.

With growing evidence of improving labour force participation and declining unemployment rate and the government's unwavering co­m­m­it- ­ment to provide continued support to the economically poor (the PM Gharib Kalyan Yojana was extended for another six months, up to the end of September 2022), the growth path ahead will likely be a more inclusive one, it said.