Finance minister Nirmala Sitharam just introduced the Finance (No.2) Bill, 2019 in the lower house. The first budget of the second Modi-led government introduced some nifty reforms to boost manufacturing in India.
Further extending the make in India initiative, GOI has laid out a plan to bring next-generation technology and also Semiconductor fabrications to India. This comes at a time when the escalating US-China tension in the backdrop is already making global players consider India as a potential manufacturing hub.
Finance Minister Speech during Budget 2019
“In order to boost economic growth and make in India initiative, the government will launch a scheme to invite global companies via transparent competitive bidding to set up mega manufacturing plants in sunrise and advanced technology areas like Semiconductor fabrications, Solar Photo Voltaic cells, Lithium-ion batteries, Solar electrical charging infrastructure, laptops, computer serves, laptop, etc. and provide them investment linked income tax exemptions and other indirect tax benefits”, the finance minister said in her budget statement.
The government also envisions to make India the global manufacturing hub of electrical vehicles. GST rate has been lowered on electric vehicles from 12 to 5 percent. The government will also provide 1.5 lakh deduction on interest paid to purchase electric vehicles.