Reforms introduced by the Government since 2014, including the Goods and Services Tax (GST) which brought in One Nation, One Market; the Insolvency & Bankruptcy Code (IBC) that resolved insolvency issues; as well as steps are taken to aid Ease of Doing Business have already benefited traders and investors from the world over. The latest set of reforms, as announced by Finance Minister Nirmala Sitharaman, will fast-track investment and economic activities.
Focus on infrastructure has propelled the overall development of the Indian economy. The Government is involved in initiating policies that would ensure the time-bound creation of a world-class infrastructure in the country. This section focuses on power, bridges, dams, roads, and urban infrastructure development. Details of the projects, organisations, policies, timelines, schemes, spending on infrastructure are provided to users.
For more information see India Infrastructure
The Government of India’s flagship initiative, Make in India, was launched to make India the world’s most preferred investment destination. To realise the goals of this initiative, the government has put in place several policies and incentives that encourage manufacturing in India. A comprehensive FDI policy brings more activities under the automatic route, increasing sectoral caps and easing conditions. In addition, a number of measures have been undertaken to ease the business environment of the country. Various State and Central Government services are being integrated on a single-window e-biz portal. Tax reforms and other structural reforms that have been implemented go a long way in strengthening India’s manufacturing capabilities
For a USD 5 trillion economy, India’s manufacturing sector has to grow in double digits on a sustained basis, becoming an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, Production Linked Incentive (PLI) Schemes to create manufacturing global champions for an AtmaNirbhar Bharat have been announced for 13 sectors. The scheme provides an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year. For this, the government has committed nearly Rs. 1.97 trillion, over 5 years starting FY 2021-22.
For more details, please refer here.
The Government has taken several business friendly initiatives to ease the process of doing business in India for foreign investors. A uniform national commercial tax structure, single window clearances, quick movement of goods, speedy settlement of contractual and other legal issues, incentives for Startups and entrepreneurial ventures create the framework for increasing ease of doing business in India.
For more information see Ease of Doing Business.
India has the third-largest armed force in the world. The allocation for defence in India’s Union Budget 2021-22 is more than Rs. 4.78 trillion. While the increase in overall Defence Budget for 2021-22 is around 1.4 percent over previous year, there is a nearly 19 percent rise in capital outlay for military modernisation. Over 50 per cent of defense-related requirements are met by imports, which offers a huge opportunity for import substitution. The opening of the defence sector for private sector participation will help foreign original equipment manufacturers to enter into strategic partnerships with Indian companies and leverage the domestic markets as well as aim at global markets. R&D incentives and weighted tax deductions for setting up of enterprises in this sector provides the sector with much-needed support for development and growth.
For more information on this sector see Defence Manufacturing
Electronics Systems and Design
Over the last couple of decades, India has been the epicenter of consumer demand fuelled by consistent GDP growth. While demand increased across all sectors, demand for high technology products, specifically electronic products has registered significant growth and going by current estimates, the Consumer Electronics and Appliances Industry in India is expected to become the fifth-largest in the world by 2025. From 354 mn smartphone users in February 2019, the number is expected to rise by 84% and reach 859 mn by 2022.
India is the largest manufacturer of two-wheelers, three-wheelers and tractors in the world, and the fifth-largest vehicle manufacturer overall, with an annual production of 30.9 million vehicles in 2018-19, India is currently the fourth largest Automobile market in the world, and is projected to be the world’s third-largest automotive market by 2026. The automobile sector has four large manufacturing hubs across the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai- Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east.
For more information in this sector see Automobile Sector
For more information on incentives on other attractive sectors in India see Make in India – Sectors