Search
+

    Another booster shot coming to revive Indian economy, PM Modi may himself unveil some steps

    Synopsis

    ​​Prime Minister Narendra Modi may himself unveil some of these steps, which could also include an initiative to reorient the tax administration, said government sources.

    Agencies
    The package is based on inputs from global manufacturers on what would incentivise them to set up factories in the country.
    NEW DELHI: The govt is likely to soon announce fresh measures, including big-ticket infrastructure projects and policy changes, to make local industry more competitive, as part of efforts to rebuild the economy in the wake of the coronavirus pandemic, said people with knowledge of the matter.

    PM Narendra Modi may himself unveil some of these steps, which could also include an initiative to reorient the tax administration, said government sources. The measures could be announced as early as August 13, they said.

    The move to make industry more competitive will be part of the Atmanirbhar Bharat Abhiyan, or self reliance campaign, they said. This latest package will follow the Pradhan Mantri Garib Kalyan Yojana and Atmanirbhar Bharat revival programmes that were announced earlier.

    Untitled-12


    “The first two sets of measures were to provide cushion to industry against the Covid shock,” said one of the officials. “This set of measures would focus on rebuilding.”

    Proposals being firmed up include a more digitally focussed tax administration, the enshrining of taxpayers’ rights, frontloading of defence purchases and expediting spending on key infrastructure projects that will have to be completed within a deadline, said the people cited earlier. The thrust of the proposals on manufacturing side is to enhance domestic industry’s competitiveness while making it easier and more attractive for foreign manufacturers to set up operations in the country.

    Tax administration reforms will add to the draw.

    Data released on Tuesday showed industrial production contracted 36% in the June quarter.

    The package is based on inputs from global manufacturers on what would incentivise them to set up factories in the country. A broad framework to make the country self-reliant and boost local manufacturing is in the works, another government official said, confirming that deliberations have taken place to this end. “These are likely to be a mix of supply-side as well as some to spur demand,” he said.

    The government has raised tariffs on many products and stipulated import licensing for others, which will make overseas goods expensive in the hope that this will encourage domestic production. The Pradhan Mantri Garib Kalyan Yojana was announced soon after the nationwide lockdown was implemented at the end of March and provided free foodgrain and cash payments to women, poor senior citizens and farmers.

    The Rs 20-lakh-crore Atmanirbhar package in May unveiled a credit guarantee scheme for MSMEs as well as key reforms for the farm sector, among other steps. Rural demand has remained strong on the back of support from the first two packages. The next set of the measures are likely to focus on securing jobs in urban centres by providing backing for businesses.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    Also Read

    67 Comments on this Story

    dipi ti43 days ago
    PM thinks of only his income in whatever he proposes. He could have earned more in fair and ethical way if instead of promo phrases, had focused on how to increase manufacturing here by Indians, not carried 'Make in India', Atmanirbhar is a typical word, means self dependent, as if Indians are dependents of other Countries. Most pity the vision of the Party which spent more time in useless work as congress bashing, than on doing some good. We need a real leader who can see what should done. Not start privatizing Railway, selling them to who actually some in Govt for while taking salary and huge perks from tax paid money. We all pay for our deeds. Initiative and motivation for manufacturing, that will help jobs also has not been there. Electronics down as tax taken up from 5% to 18. Software ( coding) is a layer on a building.
    Anand v43 days ago
    Give consumer loan at 3% interest for indian manufactured items
    Mudit Jain44 days ago
    All publicity and no action. The earlier so called measures are no measures at all. The Govt is bereft if thinking
    The Economic Times