India has made plans to boost its manufacturing industry as part of the release of its 2015-16 annual Budget and ‘Make in India’ plan.
While presenting the much anticipated Budget this week, Finance Minister Arun Jaitley outlined policy measures for the ‘Make in India’ plan launched by Prime Minister Narendra Modi.
The plan aims to increase the growth of the manufacturing sector to 12-14% per annum over the medium term and create around 100 million jobs by 2022.
One of the main initiatives of the plan is to provide tax benefits, in particular to overseas investors or companies.
Along with the ‘Make In India’ plan, the Budget also featured a Tax ‘pass through’ to be allowed through both Category I and Category II alternative investment funds.
The Rate of Income Tax on royalty and fees or technical services was also reduced from 25% to 10% to facilitate technology inflow.
One of the main schemes of the Indian Budget was for skill initiatives to be launched to create a skilled labour force.
The scheme will see the further development of the Indian Institutes of Technology, All India Institute of Medical Sciences, a post graduate institute of horticulture research and education, as well as other institutes across the nation.
Another major Budget initiative was for the Made in India and the Buy and Make in India policy to achieve greater self-sufficiency in the area of defence equipment including aircraft.
The latest Budget comes on the back of an overall growth rate for the nation which has improved to 2.1% in the current financial year from a contraction of 0.1% last year.