Sunday, 5 February 2017

Union Budget 2017-18 provides renewed impetus to manufacturing and Make in India


Ministry of Commerce & Industry01-February, 2017 20:16 IST
Union Budget 2017-18 provides renewed impetus to manufacturing and Make in India
Commerce and Industry Minister Smt. Nirmala Sitharaman has welcomed the Union Budget 2017-18 presented by Finance Minister Shri Arun Jaitley which provides renewed impetus to manufacturing and Make in India, export infrastructure and Government e-marketplace.
Several measures have been announced in the Budget 2017-18 to provide impetus to commerce and industry . The key initiatives include
1.      A Special Scheme for creating employment in leather and footwear industries is proposed to be implemented, on the lines of the scheme in textile and apparel sector.
2.      The long standing demand of startups has been accepted and the profit (linked deduction) exemption available to them for 3 years out of 5 years is changed to 3 years out of 7 years. For the purpose of carry forward of losses in respect of start-ups, the condition of continuous holding of 51% of voting rights has been relaxed subject to the condition that the holding of the original promoter/promoters continues.
3.      Further liberalisation of FDI policy is under consideration and the Foreign Investment Promotion Board (FIPB) to be abolished in 2017-18.
4.      In order to make MSME companies more viable, income tax for companies with annual turnover uptoRs. 50 crore is reduced to 25%. About 96% of companies will get this benefit of lower taxation. This will make our MSME sector more competitive as compared to large companies.
5.      MAT credit is allowed to be carried forward up to a period of 15 years instead of 10 years at present.
6.      For creating an eco-system to make India a global hub for electronics manufacturing a provision of Rs. 745 crores in 2017-18 in incentive schemes like M-SIPS and EDF. The incentives and allocation has been exponentially increased following the increase in number of investment proposals.
7.      Inverted duty has been rectified in several products in the chemicals & petrochemicals, textiles, metals, renewable energy sectors. Duty changes to improve domestic manufacturing of medical devices, those used for digital transactions and capital goods have also been announced. 
8.      Infrastructure – a key pillar under the Make in India programme has been strengthened with a large budgetary allocation. The total allocation for infrastructure development in 2017-18 stands at
Rs. 3,96,135 crores. A specific programme for development of multi-modal logistics parks, together with multi modal transport facilities, to be drawn up and implemented.
9.      Tourism is a big employment generator and has a multiplier impact on the economy. Incredible India 2.0 is proposed to be launched to promote tourism and employment. Five Special Tourism Zone, anchored on SPVs in partnership with the States would be set up.
10.  Modernisation and upgradation of identified corridor, railway lines of 3,500 kms will be commissioned, 25 stations are expected to be awarded for station redevelopment and 500 stations will be made differently abled friendly by providing lifts and escalatorsduring 2017-18. These provide large opportunities under the Make in India initiative
11.  Initiatives in Skill Development provide essential support for the Make in India sectors to thrive. Launch of SANKALP scheme to provide market relevant training to 3.5 crore youth and STRIVE scheme to improve the quality and market relevance of vocational training.
      12. A new and restructured Central scheme with a focus on export infrastructure, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18.
     13.  The Government e-market place which is now functional for procurement of goods and services, has been selected as one of the winners of the South Asia Procurement Innovation Awards of the World Bank.
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MJPS




(Release ID :157898)

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