Impact of Production Linked Incentive Scheme on the Manufacturing Sector By Nitesh Singh, IIFT
Foreword 2020 was by far the most distressing year since it was the year of a deadly pandemic that wreaked havoc on people's health, industries, and communities all over the world. The Indian economy was also harmed as a result of the resulting lockdown, which unveiled supply chain flaws and delays in working around social distancing norms. De-growth in the economy, contraction in GDP, widening of fiscal deficit, and high inflation has all illustrated the economy's extreme strike in the past year.
On the indirect tax front, there are plans to simplify customs duty provisions by revising their structure, making sector-specific improvements in customs duty rates, and streamlining those procedures, and making enforcement easier. Overall, the reforms announced seem to be in the right direction, given the fiscal constraints that the Finance Minister had to work with. If implemented in a timely manner, these initiatives can help to accelerate overall growth, as well as healthcare development, increased consumption, and infrastructure development.
Faced with the daunting task of bringing the economy out of the grip of de-growth, a slew of fiscal and non-fiscal initiatives were implemented during the year to help the economy recover from the pandemic's aftermath. This is supported by the pre-budget Economic Survey's forecast of 11% real GDP growth in 2021. The Hon'ble Finance minister has set out an idea for ‘AtmaNirbhar Bharat’, supported by six columns: welfare and health, physical assets/money resources and infrastructure, property growth for the Republic of India, reinvigorating human capital, and Research &Development, along with minimum government-most governance.
RUPEE COMES IN
In addition, initiatives to attract foreign investment in the infrastructure market, affordable housing/rental housing, tax incentives for IFSC, and start-ups have been announced, all in line with overall objectives outlined in the pillars. RUPEE GOES OUT
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