TMS Ep77: Foxconn saga, Investments, reform plans, Election Laws Bill

In 2021, India announced production-linked incentive schemes worth $37 billion for thirteen sectors ranging from IT hardware to automobiles to semiconductors. The schemes give a renewed push to the seven-year-old Make in India initiative that aims to transform our country into a manufacturing hub. But alleged disregard by factories set up by MNCs in the country may cast a pall on India’s manufacturing dreams. What happened at Foxconn in Sriperumbudur and why India should set better examples?

Apart from the government’s resolve to make the country investment friendly, this year is likely to test the sustainability of the economic growth momentum in India and that of the global economy, amid new Covid-variants. With the likely withdrawal of easy and cheap money globally, fundamentals would come to fore. Investors will have to be careful in stock selection. So, which sectors look hot and which ones should be avoided in 2022?

With markets attaining new heights, the government appeared striking the right chord on reforms front last year. But, not everything went as planned. The Centre finally got its hands free of Air India. And a lot more was lined up -- from the privatization of Bharat Petroleum Corporation Limited to key economic Bills, including the one on privatisation of two public sector banks. However, as they say, there is many a slip between the cup and the lips. Upcoming elections and farmers’ protest forced the government to take a U-turn on three farm laws. And it also didn’t table any key economic bill in the Winter Session of Parliament. Now, with 2021 over, find out how the government is likely to take forward its reforms and economic agenda this year.

Markets favour a stable government. And political parties -- which are part of the government -- periodically go to polls to prove that they enjoy the confidence of citizens. The dates for the upcoming polls in five states are likely to be announced in the next 15 days. Last month, the government tabled and passed a bill to amend the law relating to elections. But one of the changes, which linked electoral rolls with the Aadhaar ecosystem, was in the eye of the storm. Find out about it and more in this episode of the podcast.

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