Government Planning To Offer Production Linked Incentives To Boost Manufacturing: Report
The government is working on offering production linked incentives for up to five sectors to boost domestic manufacturing, a top finance ministry official said on Thursday, bolstering efforts to attract new investments in the coronavirus-stricken economy. Asia's third-largest economy is expected to contract by as much as 10 per cent in the current fiscal year beginning April, some private economists' estimate, after the outbreak crippled business and consumer activity since late March, compared to government's earlier target of about 6 per cent growth.
The government has announced a raft of measures including direct food subsidy to nearly 81 crore people and credit guarantees of Rs 3 lakh crore on loans to small businesses.
Tarun Bajaj, economic affairs secretary at the Ministry of Finance, told a virtual conference that incentives would be offered to sectors to push manufacturing and help struggling industries. Mr Bajaj didn't specify the sectors that may be eligible for incentives.
The government earlier announced production linked incentives for large scale electronic goods makers for five years, to attract investments in mobile phone manufacturing and electronic component units.
Incentives have also been announced for pharmaceutical companies for production of bulk drugs and on medical devices.
Speaking at a virtual conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday, finance ministry official said the government was expecting a "V" shape economic recovery beginning next fiscal year.
Reuters earlier reported that India is drawing up an incentive scheme for the autos sector aimed at doubling exports of vehicles and components in the next five years.
Industry and government sources said sectors such as textile and food processing manufacturers could be offered production linked incentives.
The latest data on 14-15 economic indicators including railway freight and tax collections showed a pick up in economic activities, Mr Bajaj said, adding the government was open to borrow more from the market to meet spending targets for infrastructure projects.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
