- Government plans to attract new investment
- Earlier the economy was projected to grow by 6 percent
The government is strengthening efforts to attract new investment in the economy affected by Kovid-19. For this, the government is working on production related incentives for five sectors to promote domestic manufacturing. This information has been given by sources.
Economy may fall by 10 percent in this financial year
Some economists estimate that Asia’s third-largest economy could shrink by 10 percent this fiscal year. Because business and consumer activities will be badly affected after the outbreak. Prior to Corona, the government had estimated a growth of 6 percent in this economy.
81 crore people get food subsidy
The government has announced a massive package of assistance including food subsidy to about 81 crore people and loan guarantee of Rs 3 lakh crore to small businesses. Economic Affairs Secretary in the Finance Ministry Tarun Bajaj said at a virtual conference that incentives would be offered to further advance manufacturing and help struggling industries.
Declaration of incentives on investment in electronic units
However, Bajaj did not disclose the areas which may be eligible for the incentives. The government had earlier announced to attract investment in mobile phone manufacturing and electronic units. It has announced production incentives for large-scale electronic goods manufacturers for five years.
Declaration of incentives for medicine also
Incentives have also been announced for pharmaceutical companies to produce bulk drugs and promote medical devices. In a virtual conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday, the finance ministry official said that the government is expecting a V-Shape economic recovery early next financial year.
According to one estimate, India is preparing a relief package for the auto sector with an aim to double the exports of vehicles and components in the next five years. Production-related incentive packages may be given to sectors such as textile and food processing manufacturers.
