Various manufacturing themes to bolster `Make in India` |
Modi led NDA government`s flagship programme, Make in India got a boost in the recent financial budget as proposals such as a mammoth increase in infrastructure investments, creation of a domestic hub for manufacturing of electric vehicles and tweaks in ease of doing business would warm the hearts of Indian manufacturers. Nirmala Sitharaman`s budget boldly laid out the government`s intention to invest around Rs 100 lakh crore over the next five years and industries like steel, cement, capital goods and Maintenance, Repair and Overhaul (MRO) will benefit directly with up to Rs 40-50 lakh crore over the next five years. There were incentives for small businesses too with schemes like easy access to credit for Micro, Small & Medium Enterprises (MSMEs), simplification of the Angel Tax, introduction of a payment platform along with the announcement of an Annual Global Investors Meet. To push for sales of EV and supplement demand, the budget proposed reducing the GST on EVs from 12% to 5% while offering income tax deduction of Rs 1.5 lakh on interest paid on loans taken for EVs. Customs duties were increased on many products such as auto parts, gold and precious metals, and were reduced for wool fibres, fuel for nuclear plants, cobalt matte, etc. to promote domestic manufacturing.
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