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With the need for quality and cost-effective manufacturing becoming even more necessary due, to the disruption and economic implications of COVID-19, and global corporations looking to diversify their manufacturing bases and de-risk their supply chain, India has spotted an opportunity to capitalize on this strategic shift.
India has been active on the policy front and is paving the way to become the world’s most preferred manufacturing hub. The Production Linked Incentive (PLI) scheme is the cornerstone of the Indian government’s masterplan to boost domestic manufacturing and make it globally competitive. Introduced in April 2020, the scheme has set in motion aseries of game-changing reforms that will attract global manufacturing majors with a focus on sectors such as mobilephones, electronics, pharmaceuticals, food processing, IT, battery storage, automobile components and specialty steel.The core objective is to signal a turning point for Indian Industry and gain a global presence while boosting economicgrowth through job creation.
A measure of the government’s seriousness and the scale at which it is pushing the scheme is its outlay: Rs 1.97 lakhcrore, or $26 billion, across 13 key sectors. The highlights are:
● Linking incentives to output: Incentives will be based on the overall rate of growth in that industry. Beneficiarieswill have to consider additional investments in greenfield facilities or even to carry out facility expansions toachieve this increment. All of this will reduce imports too
● Results matter: Incentives will be disbursed only after production has taken place in the country. This will boostexisting capacities in domestic manufacturing for sunrise and strategic sectors, and make domestic manufacturing globally competitive
● Creating ‘champions’ to maximize impact: The focus is on size and scale for the selected industry players todeliver volumes. This will make it exceedingly effective and can make the beneficiaries globally competitive
Download the Report Read MoreDuring H1 2021, private equity (PE) inflow in Indian real estate was noted at USD2.9 billion, more than a two-fold increase from H1 2020. Over the next three years, we expect more capital to be deployed in build-to-core mixed-use, office and logistics assets as more investment platforms are formed between global private equity funds and local developers. We estimate total PE inflows to reach USD5 billion in 2021.
Some of the key highlights from the latest flash report by Colliers Research - ‘Investments Turbocharged with Focus on Alternate Assets Classes’ are:
In this edition of The Reimagined Workplace Q&A series, we collaborate with Patrick McCreery, Global Head of Commercial and GM for Southeast Asia at Keppel Data Centres, to focus on disaster recovery - also known as business continuity planning - and discuss how the work 'place', 'space' and 'pace' are evolving within the data centres sector, as well as the opportunities for both occupiers and asset owners, going forward.
Q&A Highlights:
The Asia Pacific office demand declined from 103 million sf in 2019 to 53 million sf in 2020 as occupiers sought to limit cost exposures during the COVID-19 pandemic.
In line with this decline in demand, vacancy has increased, and rents have softened across most markets, pushing them towards greater tenant-friendly status and providing occupiers with a window of opportunity in negotiating any forthcoming lease commitments.
However, corporate occupiers need to be aware that these changes may not bring the cost savings that they might expect – some markets may see tenants having to pay more on a new lease than they were paying on the last year of an expiring lease.
In our Asia Pacific Office Rental Variability Index we take a closer look at:
