Prod-linked Sops for labour-intensive sectors soon

New Delhi: The government is considering production-linked incentives for high employment-generating sectors such as textiles, garments and leather. "Some more sectors are under consideration, especially the ones that are labour-intensive....Detailed proposals are being worked out...Textiles, garment and leather — that are labour intensive and have huge employment generation potential — are being considered," said a senior official. Similar incentives are also in the works for consumer electronics and auto component sectors. The government has already unveiled such incentives for electronics, medical devices and pharmaceuticals. The scheme for the electronics sector provides up to 25% of capital investments and has been able to draw global players such as Foxconn (to manufacture Apple phones) in the country. “Details are being worked out by administrative ministries and would be finalised soon,” the official said. These proposals will go to the cabinet soon for approval. The list of sectors is being widened in line with the ‘Atmanirbhar Bharat’ plan. Prime Minister Narendra Modi had said on August 15 that the country needs to produce not just for itself, but for the world.Production-linked incentives coupled with corporate tax rate cut have enhanced India's competitiveness vis-a-vis other Asian countries. 77686770REACHING OUT TO INVESTORS As part of the plan to spur manufacturing and boost investments, the government is reaching out to key global companies to understand their requirements and issues, if any. The ‘Invest India’ campaign’s digital platform, through the Centre and state government officials, will provide last-mile assistance to investors willing to shift base here. The government is keen to create industrial clusters with plug-and-play model for investors, and is hand-holding them by expediting licence approvals,providing policy advisory, location assessment and joint venture/strategic partner research, among others. “So, we are working on a cluster approach and revamping our business parks,” said the official. “We are looking at investments in areas wherever it adds to the supply chain and supports MSMEs. We want to deepen our partnership with traditional countries,” the official said, adding that earlier not much investments were coming from Taiwan, Australia, South America and African countries, but now there is interest. Moreover, companies also want to shorten their supply chains, which are spread in many places at present, and shift closer to the market.

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