The market goes through a vast range of motions as sentiments swing from one spectrum to another. After a strong rally, Nifty is finally facing strong resistance around 11,000. While bulls are valiantly trying to defend the current level, bears are surely making a reappearance on the street.
Today, the focus once again shifts to 'Make in India' as the government tweaks policies regarding the manufacturing of APIs. A production-linked incentive (PLI) scheme worth Rs 6,940 crore has been notified for the domestic production of APIs for 53 drugs. An incentive of Rs 3,420 crore has been notified for the production of medical devices in India.
The scheme is aimed to reduce imports from China. India currently imports ~70% of its APIs and intermediaries from China.
Solar equipment manufacturing is another sector that the government is targeting. According to the media reports, the central government is now planning to impose a 20% basic customs duty (BCD) on solar modules, solar cells, and solar inverters from August.
As per an estimate, China contributes ~80% to India's overall imports of solar equipment. To discourage Chinese imports, India had slapped a 25% safeguard duty (SGD) in August 2018. It was reduced to 20% in July and further cut to 15% in January this year.
