India offers SOPS to move manufacturing from China |
As the US and China trade war continues, the Indian government is taking full advantage as it weighs offering lucrative incentives to attract companies moving out of China. Preferential tax rates and the tax holidays are among the measures being considered. Industries which could benefit from the incentives include electronics, consumer appliances, electric vehicles, footwear and toys. The trade ministry`s effort is part of a larger plan to cut the country`s reliance on imports while boosting exports, and needs Finance Minister Nirmala Sitharaman`s approval. Other measures include setting up affordable industrial zones across the country`s coastline and giving preference to local manufacturers in government procurement as an incentive to win over companies looking for an alternative production base. The plan will help grow India`s manufacturing base and will aid Prime Minister Narendra Modi`s flagship `Make in India` initiative, which aims to boost manufacturing to 25 percent of the economy by 2020. Higher local production will help India narrow its huge trade deficit with China, its largest commercial partner.
|
|
|
|