India plans to offer production linked incentives to give fillip to manufacturing
Due to the COVID-19 pandemic, times have been challenging for businesses worldwide. With the lifting of lockdown, manufacturing has started operating, however, is facing the brunt of slowdown. With shortage of skilled labour and social distancing measure in place, manufacturing units are not functioning to their full capacity. Government in India has been changing policies and offering booster packages to reboot the economy.
According to reports, India is working on offering production linked incentives for up to five sectors to boost domestic manufacturing, according to top finance ministry official, bolstering efforts to attract new investments in the coronavirus-stricken economy.
Asia’s third-largest economy is expected to contract by as much as 10% in the current fiscal year beginning April, some private economists’ estimate, after the outbreak crippled business and consumer activity since late March, compared to government’s earlier target of about 6% growth.
The government has announced a raft of measures including direct food subsidy to nearly 810 million people and credit guarantees of 3 trillion rupees ($40.17 billion) on loans to small businesses.