“Without PLI, a meaningful recovery would have come only after two years in non-metal and cement sectors,” said the report. PLI is directed at sectors that account for 30-35 percent of non-oil import bills.
For instance, automobiles and components worth Rs 80,000 crore to Rs 90,000 crore—the highest among all the sectors in value terms-- were imported from China and Korea in FY20. This was 20-25 per cent of India’s auto components requirements.
The second largest was the IT hardware (laptop, personal computers, tablets and servers) sector that imported goods worth Rs 25,000 crore to Rs 30,000 crore from China and Hong Kong in FY20. This was 80-85 per cent of demand for such hard wares in the domestic market.
Meanwhile Crisil expects the high government spend across various sectors including manufacturing and infrastructure to ensure recovery in corporate revenue but added the recovery will be mainly "optical". The revenue of top 800 companies is expected to go up only 8 per cent in FY22 over FY19. The recovery it added will be led by exports, products and infra spends. However, of the 30-35 sectors spread across 800 only a third are likely to post double-digit growth over fiscal 2019. Most companies in the services sectors including aviation and hospitality may not even breach the FY19 levels and may see nearly a decade of revenue shaved off, it cautioned.
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