1. Introduction: As the Interim Union Budget 2024 approaches, let’s reflect on significant announcements from previous years. This analysis delves into the government’s endeavors to fulfill promises across diverse sectors, ranging from MSME benefits to tax exemptions.
2. Benefits of MSMEs!
Finance Act, 2023 expanded scope of Section 43B of the IT Act, 1961 to provide that any sum payable to a MSME beyond the time limit as per the MSMED Act shall be allowed as deduction only on actual payment.
| Announcement in Finance Act, 2023: | Progress so far: |
| Moreover, to support MSMEs in timely receipt of payments, I propose to allow deduction for expenditure incurred on payments made to them only when payment is actually made. | To promote timely payments to MSMEs, Finance Act, 2023 has provided that any sum payable by the assessee W a micro or small enterprise beyond the time limit specified in section 15 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 shall be allowed as deduction only on actual payment. |
3. Promotion of Electronic Gold!
To promote investment in electronic gold, conversion of physical gold to electronic gold receipt and vice versa would not be treated as transfer and would not attract Capital Gains.
| Announcement in Finance Act, 2023 |
Progress so far |
| “Not treating conversion of gold into electronic gold receipt and vice versa as capital gain”. |
To promote investment in the electronic equivalent of gold, the conversion of physical gold to electronic gold receipt and vice versa would not be treated as transfer and hence would not attract capital gains. |
4. ITD fillip for Start-Ups!
→ Period of incorporation of eligible start-ups (incorporated before 1.4.2024) extended by 1 year.
→ Period of carry forward and set off of losses increased from 7 to 10 years.
| Announcement Finance Act, 2023 | Progress so far |
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“I propose to extend the date of incorporation for income tax benefits to start-ups from 31.03.23 to 31.03.24. I further propose to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of Incorporation to ten years”. |
♦ The period of incorporation of eligible start-ups for tax benefits has been extended by 1 year to those start-ups which have been incorporated before lt of April 2024. ♦ The period for eligible start-ups to carry forward and set off losses has been increased from 7 to 10 years (subject to certain conditions). |
5. Tax Benefits to IFSC, GIFT City
Section 47 (viiad) of the Income-tax Act, 1961 amended to extend the date of transfer of assets of the original fund to a resultant fund in case of relocation to IFSC, GIFT City to 31st March, 2025.
| Announcement Finance Act, 2023 |
Progress so far |
| “Extension of period of tax benefits to funds relocating to IFSC, Gift City till 31.03.2025”. | To extend the period of tax benefits to funds relocating to IFSC, Gift City, clause (viiad) of section 47 of the Income – tax Act, 1961 has been amended.
The date for transfer of assets of the |
6. Tax exemption to Development Authorities!
Section 10(46A) inserted in the Act to provide exemption to any income arising to a body/authority established under a Central/State Act for housing, planning, development of cities/towns, etc.
| Announcement Finance Act, 2023 | Progress so far |
| it is proposed to provide exemption to any income arising to a body or authority or board or trust or commission, (not being a company) which has been established or constituted by or under a Central or State Act with the purposes of satisfying the need for housing or for planning, development or improvement of cities, towns and villages or for regulating any activity or matter, irrespective of whether, it is carrying out commercial activity: |
Section 10(46A) has been inserted in the Income-tax Act, 1961 for this purpose. |
7. Reduced bottlenecks in Appellate Administration!
A new authority of Joint/Additional Commissioner (Appeals) created to handle certain class of cases involving small amount of disputed demand.
Notification No.33/2023 dated 29.05.23 issued.
| Announcement in Finance Act, 2023 | Progress so far |
| “To reduce the pendency of appeals at Commissioner level, I propose to deploy about 100 Joint Commissioners for disposal of small appeals”. | For effective management of litigation and speedy disposal of appeals, a new authority for appeals has been created at Joint Commissioner/Additional Commissioner level to handle certain class of cases involving small amount of disputed demand. Scheme has also been notified vide Notification No. 33 of 2023 dated 29.05.2023. |
8. ITD promotes Digital Transactions!
Finance Act, 2023 increased threshold limits for availing the presumptive scheme of taxation:
Small enterprises: From Rs. 2 crore to Rs. 3 crore.
Professionals: From Rs 50 lakh to Rs. 75 lakh.
| Announcement Finance Act, 2023 |
Progress so far |
| “Micro enterprises with turnover up to 2 crore and certain professionals with turnover of up to 50 lakh can avail the benefit of presumptive taxation. I propose to provide enhanced limits of 3 crore and 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent”. |
Finance Act, 2023 has increased the threshold limits for availing the presumptive scheme of taxation: In case of small enterprises whose cash receipts are no more than 5%, the threshold limit to avail presumptive scheme has been increased from 2 crore to crore. In case of professionals whose cash receipts are no more than 5%, the said limit has been increased from Rs. 50 lakh to Rs. 75 lakh. |
9. ITD boost to Agniveers!
Section 80 CCH in the Act allows deduction for any contribution made to the Agniveer Corpus Fund a/c.
Section 10 (12C) of the Act exempts from tax any payment received by Agniveer or his nominee.
| Announcement Finance Act, 2023 | Progress so far |
| “Providing EEE status to Agniveer Fund”. |
♦ Section 8OCCH introduced in the Income-tax Act, 1961 to allow deduction for any contribution made by Agniveer or the Central Government to the Agniveer Corpus Fund account, from the computation of the total income of Agniveer . ♦ Clause (12C) inserted in section 10 of the Income-tax Act, 1961 to exempt from tax, any payment received by Agniveer or his nominee from the Agniveer Corpus fund. |
PROMOTION OF CO-OPERATIVES
10. New Manufacturing Co-operative Society set up on or after 01.04.2023 which commences manufacturing or production on or before 31.03.2024 may opt for a concessional rate of 15% for AY 2024-25 onwards.
| Announcement Finance Act, 2023 | Progress so far |
| “First, new co-operatives that commence manufacturing activities till 31.3.2024 shall get the benefit a lower tax rate of 15 per cent, as is presently available to new manufacturing companies”. |
♦ New Section 115BAE inserted in Income-tax Act, 1961 providing reduced tax rate for new manufacturing co-operative societies. ♦ New manufacturing cooperative society set up on or after 1.04.2023, which commences manufacturing or production on or before 31.03.2024 and does not avail any specified incentive or deductions, may opt to pay tax at a concessional rate of 15% for Assessment Year 2024-25 onwards. ♦ Surcharge would be at 10% on such tax. |
11. Amendment in Section 269SS & 269T of the Income-tax Act, 1961 to provide a higher limit of Rs.2 lakh per member of PACS & PCARDBs for cash deposits to & loans in cash.
| Announcement Finance Act, 2023 | Progress so far |
| “Thirdly, I am providing a higher limit of Rs.2 lakh per member for cash deposits to and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks(PCPRDBs)”. | Amendment has been carried out in Section 269S5 and Section 269T of the Income-tax Act, 1961. |
12. Finance Act, 2023 has provided relief to co-operatives by raising the threshold limits to withdraw cash without TDS, from Rs 1 crore to Rs 3 crore under Section 194N of the Income-tax Act, 1961.
| Announcement Finance Act, 2023 | Progress so far |
| “Similarly, a higher limit of 3 crore for TDS on cash withdrawal is being provided to co-operative societies”. | The Finance Act, 2023 has provided relief to the co-operatives by raising the threshold limits to withdraw cash without TDS, from Rs. 1 crore to 3 crore under Section 194N of the Income-tax Act, 1961. |
13. Benefits in Personal Income Tax!
Vide Finance Act, 2023, Section 87A of the Income-tax Act, 1961 has been amended to allow rebate to tax resulting in no tax liability to persons having income up to Rs. 7 lakh.
| Announcement – Finance Act, 2023 | Progress so far |
| The first one concerns rebate. Currently, those with income up to 5 lakh do not pay any income tax in both old and new tax regimes. I propose to increase the rebate limit to 7 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to 7 lakh will not have to pay any tax”. | Section 87A of the Income-tax Act, 19 61 has been amended to allow rebate of tax resulting in no tax liability to persons having income up to 7 lakh. |
14. Reduction in the maximum tax rate to 39 percent for persons opting for the New Tax Regime brought in through the Finance Act, 2023.
| Announcement Finance Act, 2023 | Progress so far |
| “My fourth announcement in personal income tax is regarding the highest tax rate which in our country is 42.74 per cent. This is among the highest in the world. I propose to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime. This would result in reduction of the maximum tax rate to 39 per cent”. | Reduction in the maximum tax rate for persons in the new tax regime has been brought in through the Finance Act, 2023. |
15. Limit for tax exemption on leave encashment on retirement or otherwise of non-government salaried employees increased to Rs 25 lakh wef 1.04.23.
Notification No. 31/2023 dtd 24.05.23 issued.
| Announcement in Finance Act, 2023 | Progress so far |
| “Lastly, the limit of 3 lakh for tax exemption on leave encashment on retirement of non-government salaried employees was last fixed in the year 2002, when the highest basic pay in the government was 30,000/- pm. In line with the increase in government salaries, I am proposing to increase this limit to 25 lakh”. | The Central Government has notified the increased limit for tax exemption on leave encashment on retirement or otherwise of non-government salaried employees to Rs. 25 lakh w.e.f. 01.04.2023. Notification No. 31/2023 dated 24.05.2023 has been published and is available at https://egazette.nic.in. |
16. Section 115BAC of the Income-tax Act, 1961 amended to allow a standard deduction of Rs 50,000 in New Tax Regime.
| Announcement – Finance Act, 2023 | Progress so far |
| “My third proposal is for the salaried class and the pensioners including family pensioners, for whom I propose to extend the benefit of standard deduction to the new tax regime”. | Section 115BAC of the Income-tax Act, 1961 has been amended to allow a standard deduction of 50,000 in the new tax regime. |
17. Finance Act, 2023 addressed the issue of litigation arising out of payment of Final Cane Price by cooperatives over & above Statutory Minimum Price for purchase of sugarcane.
Relief to co-operatives provided by introducing Section 155(19).
| Announcement – Finance Act, 2023 | Progress so far |
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“Secondly, I propose to provide an opportunity to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This is expected to provide them with a relief of almost Rs. 10,000 |
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18. Finance Act, 2023 amended Section 115BAC to reduce the rates under the New Tax Regime providing an option to individual taxpayers for paying income-tax at lower slab rates if they did not avail specified exemption/deduction
| Announcement – Finance Act, 2023 | Progress so far | |||||||||||||||||||||
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“The second proposal relates to middle-class individuals. I had introduced, in the year 2020, the new personal income tax regime with six income slabs starting from 2.5 lakh. I propose to change the tax structure in this regime by reducing the number of slabs to five and increasing the tax exemption limit to 3 lakh”. |
Finance Act, 2023 has reduced the rates applicable in case of individuals, by providing that, with effect from Assessment Year 2024-25, the following rates under sub-section (1A) of section 115BAC of the Income-tax Act, 1961 shall be the default rates:
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19. In order to reduce input costs and promote domestic manufacturing of chemicals, CBIC exempted denatured ethyl alcohol from Basic Customs Duty as part of #UnionBudget2023-24 announcement.
Chemicals and Petrochemicals
| Progress so far | Announcement |
> In order to augment availability of inputs for Chemical industry, denatured ethyl alcohol is exempt from the Customs Duty with the following Notification:
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Denatured ethyl alcohol is used in chemical industry.
I propose to exempt Basic Customs Duty on it. This will also support the Ethanol Blending Programme and facilitate our endeavour for energy transition. |
20. In order to reduce input costs and augment availability of critical inputs to promote domestic manufacturing of chemicals, CBIC gave concessional duty on acid grade fluorospar and crude glycerin.
Chemicals and Petrochemicals
| Progress so far | Announcement |
> To make the domestic industry competitive and in order to reduce input costs and promote domestic manufacturing of Chemicals, the following notifications were issued:
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Basic Customs Duty is also being reduced on acid grade fluorspar from 5 per cent to 2.5 per cent to make the domestic fluorochemicals industry competitive. Further, the Basic Customs Duty on crude glycerin for use in manufacture of epicholorhydrin is proposed to be reduced from 7.5 per cent to 2.5 %. |
20. As part of #UnionBudget announcement, CBIC corrected the inverted duty structure in order to boost domestic manufacturing of electrical kitchen chimneys. #PromisesDelivered
Electrical
| Progress so far | Announcement |
> In pursuance to rectify inverted duty structure, the following notification was issued:
> Changes were brought in to correct inverted duty structure so as to boost domestic manufacturing of electric kitchen chimneys. |
To rectify inverted duty structure and encourage manufacturing of electric kitchen chimneys, the Basic Customs Duty on electric kitchen chimney is being increased from 7.5 per cent to 15 per cent and that on heat coils for these is proposed to be reduced from 20 per cent to 15 per cent. |
21. CBIC provided exemption and concession in Basic Customs Duty for domestic production of electronics as part of #UnionBudget announcement.
Electronics
| Progress so far | Announcement |
> In pursuance to provide relief in Customs Duty, the following notifications were issued:
> These steps will reduce input costs and deepen value addition in domestic manufacturing of electronics. |
To further deepen domestic value addition in manufacture of mobile phones, I propose to provide relief in Customs Duty on import of certain parts and inputs like camera lens and continue the concessional duty on lithium-ion cells for batteries for another year.
Similarly, to promote value addition in manufacture of televisions, I propose to reduce the basic customs duty on parts of open cells of TV panels to 2.5 %. |
22. Various concessions and exemptions from Basic Customs Duty continue to operate to augment availability of raw material for the domestic metals industry, especially in the MSME sector.
Metals
| Progress so far | Announcement |
> To augment availability of raw material for the domestic metals industry, the changes were brought about by the following Notification:
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Exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued.
Similarly, the concessional BCD of 2.5 per cent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector. |
23. In an effort to push for domestic manufacturing of Lab Grown Diamonds, CBIC announced reduction of duty on Lab Grown Diamonds seeds from 5% to 0% as part of #UnionBudget announcement.
Lab Grown Diamonds
| Progress so far | Announcement |
> To promote domestic manufacturing of lab-grown diamonds and boost export competitiveness of Gems and Jewellery sector, the change was brought about via the following Notification:
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I propose to reduce Basic Customs Duty on seeds used in their manufacture. |
24. PLI Scheme for White Goods, approved by the Union Cabinet in April 2021, is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains.
Production Linked Incentive (PLI) Scheme For White Goods (Air Conditioners & Led Lights)
| Progress so far: | Announcement |
| > 23 MSME applicants have committed investment of Rs. 1,042 crore under the Scheme.
> 100% Applicants, who opted for Gestation period upto March, 2022 have commenced production. > As against the threshold investment of Rs. 1,266 crore, actual investment of Rs. 2,002 crore have been done by the beneficiaries upto March, 2023. > Investment of Rs. 2,084 crore have been done by the beneficiaries upto 09/2023. > Approved by the Union Cabinet on 7 April 2021, with total outlay of Rs. 6,238 crore. > 64 Companies Selected under the Scheme. 34 Companies to invest Rs. 5,429 crore for Air Conditioner Components and 30 Companies to invest Rs. 1,337 crore for LED Component Manufacturing. > Investments of Rs. 6,766 crore envisaged creating additional direct employment of about 48 thousand persons. > Expected net incremental production of more than Rs. 1 Lakh 23 thousand Crore during the scheme period. > 13 Foreign Companies are investing Rs. 2,090 Crore. |
> For a USD $5 trillion economy, our manufacturing sector must grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge
> technology. To achieve all the above, PLI schemes have been announced for 13 sectors to create manufacturing global champions for an AatmaNirbhar Bharat. The government committed nearly Rs. 1.97 lakh crore, over 5 years, starting in FY21-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
25. PLI Scheme on Advanced Chemistry Cell Battery Storage will enable India to shift to a more environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.
Production Linked Incentive Scheme for National Programme on Advanced Chemistry Cell Battery Storage
| Progress so far: | Announcement |
| > Scheme implementation approved on 12 May 2021, with an outlay of Rs 18,100 crore.
> To achieve a manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) capacity of ACC and additional 5 GWh of Niche ACC technologies. > Three (3) firms have been selected for setting up ACC manufacturing, with a combined capacity of 30 GWh, their projects are under gestation period till Dec, 2024 > Programme Agreements and Tripartite Agreements are signed with the three (3) selected bidders. > Projects demonstrated growth with a cumulative investment reaching Rs 1234.5 crore and an associated cumulative employment of 528 individuals as on December , 2023. > Tender for 10 GWh (MHI — floating of RFP) by end January 2024 > Tender for earmarked 10 GWh (MNRE) — stakeholder consultation is being proposed by MNRE. |
For a USD $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore over 5 years, starting in FY 2021-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
26. A total of 85 companies approved under the PLI Scheme for Automobile and Auto Component Industry in India with over Rs 67,000 core investment commitment in 5 years.
Production Linked Incentive Scheme for Automobile and Auto Component Industry
| Progress so far: | Announcement |
| > MHI is committed to support the industry to fulfil the vision `Excellence through Aatmanirbharta’ as envisioned by the Hon’ble Prime Minister.
> Approved on 15th Sep. 2021, with a budgetary outlay of Rs. 25,938 crore. > 85 applicants have been approved under the Scheme. > Additional employment opportunities for over 1.48 lakh people: Already generated 28,515 jobs up to 31st Dec. 2023. > Commitment of investment of Rs.67,690 crore: Achieved investment of Rs.13,037 crore up to 31st Dec. 2023. > Targeting incremental production of advanced automotive technology (AAT) products of over Rs.2.3 lakh crore: Achieved incremental production of Rs. 1,340 crore up to 31st Dec. 2023. > To facilitate ease of doing business, MHI published standard operating procedure (SOP) for certification of domestic value addition (DVA) on 27th Apr. 2023. > Till date 3 Applicants have received DVA certification from testing agencies for their 22 variants of AAT products. > Scheme to enhance India’s manufacturing capabilities. > Encourages the industry to manufacture advanced automotive technology (AAT) products. > Big boost to production of Zero Emission Vehicles (ZEVs). > Many applicants represented that acquisition of technology/ localisation of parts/ supply chain is taking time and there is a long cycle of validation. > Applicants needed time to achieve DVA of minimum 50%. Accordingly, MHI has issued a Gazette Notification to announce the extension of the tenure of the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components by one year. |
For a USD $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore over 5 years, starting FY 2021-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
27. With Investment Memorandum of Understanding MoUs of over Rs. 13,000 crore already signed, PM MITRA Parks will open the gateway for world-class industrial infrastructure and will attract cutting age technology, boost FDI and local investment in the textiles sector.
Mega Integrated Textile Region and Apparel (PM MITRA) Parks
| Progress so far: | Announcement |
| > Union Cabinet approved proposal for setting up of 7 PM MITRA Parks with a total outlay of Rs. 4,445 crore over a period of 5 years.
> Proposals were invited from all states. A total of 18 proposals were received from 13 states. > 7 PM MITRA Sites were selected using a challenge method – Naysari (Gujarat), Dhar (Madhya Pradesh), Lucknow (Uttar Pradesh), Virudhnagar (Tamil Nadu), Kalaburagi (Karnataka), Warangal (Telangana) and Amrawati (Maharashtra). > Investment MoUs worth Rs. 13,850 crore already signed. > Work on infrastructure leading to PM MITRA Parks are in progress. |
To position India strongly on the global textile market, attract large investments and boost employment generation, a scheme of PM Mega Integrated Textile Region and Apparel Parks(PM MITRA) has been launched in addition to the PLI Scheme. This will create world class infrastructure with plug and play facilities to enable crate global champions in exports. 7 PMMITRA Parks will be established over 7 years. |
28. PLI Scheme for Textiles Sector has attracted total investment of Rs 19,798 crore with projected turnover more than Rs 1.9 crore and employment potential of around 2.5 lakh.
Production Linked Incentive (PLI) Scheme for Textiles
| Progress so far: | Announcement |
|
> The Cabinet approved the Production-Linked Incentive (PLI) Scheme for Textiles on 8th September 2021, for MMF Apparel, MMF Fabrics and products of Technical Textiles for enhancing India’s manufacturing capabilities and enhancing exports with an approved financial outlay of Rs. 10,683 crore over a five year period. > Operational Guidelines for PLI Scheme for Textiles were issued and uploaded on the website of Ministry of Textiles on December 28, 2021, and applications were invited through the Ministry Web Portal from 01.01.2022 to 28.02.2022. > 67 Applications under PLI Scheme were received, out of which 64 applications have been selected by the Selection Committee. > In the approved 64 applications, the projected total investment is Rs. 19,798 crore, projected turnover to be incentivised is Rs. 1,93,926 crore, and proposed employment is 2,45,362. > PLI Portal re-opened till 31st December, 2023 for inviting applications as per existing terms and conditions. > Letters of approval have been sent to 57 selected participants after fulfilling the mandatory requirement of creation of new company. > Investment of around Rs. 2,119 crore has been made, and 12 companies have reported turnover. > As reported by the companies, orders totaling Rs. 1,009 crore have been placed for the acquisition of plant and machinery. |
For a USD $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, PLI Schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs.1.97 lakh crore, over 5 years, starting FY 2021-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
29. Krishi Udaan Scheme stands converged with Operation Greens. It aims to open new avenues of growth for the agriculture sector & help attain farmers’ double income by removing barriers in supply chain, logistics & transportation of farm produce.
Expansion of scope for Krishi UDAN in convergence with Operation Green
| Progress so far: | Announcement |
| > Krishi UDAN aims to improve value realisation through better integration and optimisation of Agri-harvesting, air transportation, and contributing to Agri-value chain sustainability.
> The Scheme proposes to facilitate and incentivise the movement of Agri-produce by air transportation. > Strengthening cargo-related infrastructure at airports and off airports. > The 1st phase of the Krishi UDAN 2.0 Scheme implemented across 58 airports, with focus on the Northeast, hilly, and tribal regions. > Development of E-KUSHAL (Krishi UDAN for Sustainable Holistic Agri-Logistics) to facilitate information dissemination to all stakeholders; Proposal to integrate E-KUSHAL with National Agriculture Market (e-NAM) |
For a USD $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore over 5 years, starting in FY 2021-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
30. With India’s potential to become global drone hub by 2030, PLI Scheme for drones and drone components will enhance India’s manufacturing capabilities while creating significant employment & growth opportunities.
Production-Linked Incentive (PLI) Scheme for Drones and Drone Components
| Progress so far: | Announcement |
| > Incentives of Rs 120 crore will be given in the next 3 years under the PLI Scheme for drones and drone components.
> Claims by manufacturers is set at 20% of the value addition, remaining constant for 3 years. > PLI for a beneficiary is capped at 25% of the total annual outlay, widening the number of beneficiaries. > An amount of Rs. 29.43 crore disbursed during FY-2022-23 under the scheme. > Drone manufacturing industry is expected to generate over 10,000 direct jobs. > Drone Manufacturing industry may grow to over Rs. 900 crore in FY 2023-24. > India has the potential to become a global drone hub by 2030. |
For a USD $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore over 5 years, starting in FY 2021-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
31. PLI Scheme introduced to boost domestic critical Key Starting Materials (KSMs)/Active Pharmaceutical Ingredients (API) production for enhancing India’s manufacturing capabilities and enhancing exports.
Department of Pharmaceuticals: PLI Scheme for Promotion of Domestic Manufacturing of critical Bulk Drugs (KSMs/ Drug Intermediates & APIs)
| Progress so far: | Announcement |
| > To attain self-reliance and reduce import dependence in critical Key Starting Materials (KSMs)/ Drug Intermediates (Dls)/ Active pharmaceutical ingredients (APIs).
> To boost domestic manufacturing of identified KSMs, Dls and APIs by attracting large investments > Approved by the Union Cabinet with total outlay of Rs. 6,940 crore. > Approval accorded to 48 applicants/projects. > Committed investment of Rs. 3938.57 crore. Total investment made by the applicants till September 2023: Rs. 3,062.69 crore. > 27 projects commissioned. > Financial incentive on sales of 41 products categorised into 4 Target Segments. |
> PLI Schemes to create manufacturing global champions for an Aatma Nirbhar Bharat have been announced for 14 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore. This initiative will help bring scale and size in key sectors, create and nurture global champions, and provide jobs to our youth. |
32. PLI Scheme for Promoting Domestic Manufacturing of Medical Devices targets to make #AatmanirbharBharat in the specified target segments in the medical devices sector.
Department Of Pharmaceuticals
PLI Scheme for Promoting Domestic Manufacturing of Medical Devices
| Progress so far: | Announcement |
| > To boost domestic manufacturing of select Medical Devices (MDs), viz, cancer care/radiotherapy MDs, radiology and imaging MDs (both ionising & non-ionising radiation products), nuclear imaging devices, anesthetics and nuclear imaging devices, anesthetics and cardio-respiratory MDs, including catheters of cardio-respiratory category and renal care medical devices and all implants including implantable electronic devices.
> Approved by the Union Cabinet with total financial outlay of Rs. 3,420 crore. > 26 applications approved. > Total investment made by the applicants till September 2023: Rs. 879.42 crore. > Committed Investment of Rs. 1,330.44 crore. > 14 projects commissioned for 37 products. |
> PLI Schemes to create manufacturing global champions for an Aatma Nirbhar Bharat have been announced for 14 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore. This initiative will help bring scale and size in key sectors, create and nurture global champions, and provide jobs to our youth. |
33. Production Linked Incentive PLI Scheme for pharmaceuticals is part of the government’s flagship Aatma Nirbhar Bharat plan aimed at enhancing India’s manufacturing capabilities and exports.
Department of Pharmaceuticals PLI Scheme for Pharmaceuticals
| Progress so far: | Announcement |
| > To enhance India’s manufacturing capabilities by increasing investment and production and contributing to product diversification to high-value goods in the pharma sector.
> To benefit domestic manufacturers, create employment, and contribute to the availability of affordable medicines for consumers. Approved by the Union Cabinet with a total outlay of Rs. 15,000 crore. 55 applicants approved, including 20 MSMEs and 5 In vitro diagnostics (IVDs) projects. > Investment made till June 2023: Rs. 22,381.38 crore. > Total committed investment: Rs. 17,275 crore. > Manufacturing of approved products started in 261 locations. |
> PLI Schemes to create manufacturing global champions for an Aatma Nirbhar Bharat have been announced for 14 sectors. For this, the government has committed nearly Rs. 1.97 lakh crore. This initiative will help bring scale and size in key sectors, create and nurture global champions, and provide jobs to our youth. |
34. As part of the Government impetus to Green Mobility, CBIC exempted excise duty on GST-paid compressed biogas used in blending and extended exemption to import of capital goods for manufacturing of lithium-ion cells for batteries used in electric vehicles.
Green Mobility
| Progress so far: | Announcement |
| > These changes were made to encourage the offtake of Compressed Biogas produced in the country and to avoid double taxation on compressed natural gas following the blending/co-mingling with Biogas/CBG.
> BCD exemption was extended to capital goods/machinery for use in manufacture of Lithium ion cells of EV batteries in line with Lithium ion cells of mobile batteries to bring parity and increase value addition in EV manufacturing. > The following Notifications were issued to give effect to these changes:
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To avoid cascading of taxes on blended compressed natural gas. I propose to exempt excise duty on GST-paid compressed bio gas contained in it.
To further provide impetus to green mobility, Customs duty exemption is being extended to import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles. |
35. In order to rationalise Basic Customs Duty rate structure, CBIC compressed Basic Custom Duty rate slabs to reduce compliance burden and ease of trade.
Reduction in Custom Duty Rates on Some Goods
| Progress so far: | Announcement |
| > As part of rationalisation of customs duty rate structure, the number of basic Customs Duty rates on goods, other than on textiles and agriculture, was reduced from 21 to 13 to reduce compliance burden and ease of trade via:
> Notified vide Notification No. 03/2023-Customs, Notification No. 04/2023-Customs and 05/2023-Customs dated 01.02.2023 refers. |
I propose to reduce the number of Basic Customs Duty rates on goods, other than textiles and agriculture, from 21 to 13.
As a result, there are minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha. |
36. National Calamity Contingent Duty on cigarettes was increased to index price of cigarette to inflation vide Section 172 of Finance Act.
Cigarettes
| Progress so far: | Announcement |
| > To index cigarette prices to inflation, changes were brought by implementation vide Section 172 of Finance Act, 2023 refers | National Calamity Contingent Duty (NCCD) on specified cigarettes was last revised three years ago. This is proposed to be revised upwards by about 16 per cent. |
37. As part of Union Budget 2023-24 announcement, CBIC hiked basic customs duty on compounded rubber to curb circumvention in duty.
Compounded Rubber
| Progress so far: | Announcement |
| > To prevent circumvention of higher duty on Natural Rubber which would have impacted small rubber growers, the following changes were made:
> Implemented vide Section 135(a) of Finance Act, 2023 refers |
The Basic Customs Duty rate on compounded rubber is being increased from 10 per cent to ’25 per cent or T30/kg whichever is lower’, at par with that on natural rubber other than latex, to curb circumvention of duty. |
38. Various concessions and exemptions from Basic Customs Duty continue to operate to augment availability of raw material for the domestic metals industry, especially in the MSME sector.
Metals
| Progress so far: | Announcement |
| > To augment availability of raw material for the domestic metals industry, the changes were brought about by the following Notification:
> Notified vide SI. No. (27), (28) and (29) of notification No. 02/2023-Customs dated 01.02.2023 refers. |
Exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued.
Similarly, the concessional BCD of 2.5 per cent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector. |
39. With 41 operational Vande Bharat trains already running, Indian Railways is in process of selecting technology partners to indigenously manufacture 400 Energy Efficient Vande Bharat trains in India.
Vande Bharat Trains
| Progress so far: | Announcement |
| > As of 6th January, 2024, there are 41 operational Vande Bharat Express Trains, with 82 train numbers, operating across 15 zones.
> Indian Railways has also floated tenders to select technology partners for manufacturing of 400 Energy Efficient Vande Bharat trains based on different technologies in IR Production Units. |
> Four hundred new‑generation Vande Bharat Trains with better energy efficiency and passenger riding experience will be developed and manufactured during the next three years. |
40. Kavach is indigenously developed world-class technology that enhances safety and capacity augmentation of Indian Railways.
Rail Network Under Kavach
| Progress so far: | Announcement |
| > Kavach work commissioned on 1,465 Route KM (RKM) as on 28.11.2023.
> Further, work is in progress for 3,000 RKM in Delhi-Mumbai and Delhi-Howrah routes. > Kavach has so far been deployed on 1,465 Route km and 139 locomotives (including Electric Multiple Unit rakes) on South Central Railway on following sections: i. Lingamapalli – Vikarabad – Wadi and Vikarabad – Bidar section (265 Rkm). ii. Manmad – Mudkhed -Dhone – Guntkal section (959 Rkm) iii. Bidar-Parbhani section (241 Rkm) > Presently, Kavach tenders awarded for Delhi-Mumbai and Delhi-Howrah corridors (approximately 3,000 RKM) > Preparatory works, including survey, Detailed Project Report (DPR) and preparation of detailed estimate on another 6000 RKm under way. > Features of Kavach: Indian Railway developed its own Automatic Train Protection (ATP) System Kavach for enhancing safety of running trains, which features:
|
> As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous world-class technology for safety and capacity augmentation in 2022-23. |
41. With more than 1,134 outlets under #OneStationOneProduct Scheme, local indigenous products are showcased in a niche market, giving a boost to #VocalforLocal.
One Station-One Product (OSOP)
| Progress so far: | Announcement |
| > OSOP Pilot was launched on 25.03.2022.
> Based on the experience gained from the pilot projects, OSOP policy was issued on 20.05.2022. > As on 09.11.2023, 1,037 stations are covered with 1,134 OSOP outlets. > OSOP provides market for local/ indigenous products besides additional income opportunities for marginalised sections of society. > Indian Railways is providing uniquely designed sale outlets with distinctive look, feel and logo at stations as per the design developed by NID/Ahmedabad for showcasing, selling and giving high visibility to indigenous/local products at a nominal registration fee. > Allotment is done on rotation basis by draw of lots at stations to applicants meeting the objectives of the Scheme. |
> One Station-One Product concept will be popularised to help local businesses & supply chains. |
42. With more than 6.19 crore active FASTags enabling seamless movement and enhancing transportation efficiency, toll collection penetration has reached about 98%.
FASTags
| Progress so far: | Announcement |
| > Government declared all lanes of fee plazas on National Highways (NHs) as FASTag lanes w.e.f. midnight of 15th/16th February 2021.
> More than 7.98 crore FASTags issued (as of 30th November 2023). > Toll collection penetration via FASTag has reached 98% (as of 30th November 2023). > FASTag implementation resulted in seamless movement of traffic, with average wait time reducing from 8 minutes to 45 seconds at fee plazas. > To further reduce the wait time, MoRTH has undertaken a pilot on barrier-free tolling via ANPR technology on the Delhi-Meerut Expressway. |
> The system of user fee payments physically by cash at road fee plazas is being fast replaced with Fastags and other electronic payment systems to make road travel seamless. |
43. With massive development of Major Expressways / Corridors is underway, shifting Indian transport network from the conventional mode of widening the existing highways.
Major Expressways / Corridors
| Progress so far: | Announcement |
| Delhi-Mumbai Expressway:
> Delhi-Mumbai Expressway, India’s largest expressway, is one of the fastest built expressways in the world, with construction happening at a record pace. > Eight – Lane expressway of length 1,386 km planned at a capital cost of Rs. 103,636 crore. > 1,368 km awarded & 910 km constructed till November – 2023. > Delhi- Dausa – Lalsot (Jaipur) (247 km) and Jhalawar – Ratlam – MP/GJ Border (245 km) sections completed and opened to traffic. > Vadodara-Ankleshwar (100 km) and Lalsot – Jhalawar (197 km) sections expected to be completed by March – 2024. Delhi-Amritsar-Katra Expressway: > 670 km length of expressway planned at the cost of Rs. 39,000 crore between Delhi and Katra, including a spur to Amritsar. The expressway is being implemented in 2 phases: > Phase 1: Delhi to Gurdaspur (incl. spur to Amritsar) > Phase 2: Gurdaspur to Katra. > 641 km awarded & 181 km constructed till November – 2023. > Western Peripheral EXP – Kaithal (120 km) section likely to be opened to traffic by March – 2024. > Complete expressway likely to be completed by FY 2025-26. Amritsar-Bhatinda-Jamnagar (Trans-Rajasthan) Corridor: > Six – Lane access-controlled corridor of length 917 km at the cost of Rs. 23,203 crore. > Entire length is awarded; 747 km completed till November – 2023. > Arjansar (Bikaner) – Jalore section in Rajasthan (501 km) inaugurated on 8th July’23. > Remaining section in Rajasthan & Gujarat section likely to be completed by March – 2024. |
> Some of the flagship corridors and other important projects would see considerable activity in 2021-22. |
44. Through the development of #EconomicCorridors in Assam, the integrated transport system is designed to stimulate economic development in North East.
Economic Corridors
| Progress so far: | Announcement |
| > National Highway (NH) works of 214 km with a total capital cost of Rs. 1892 crore completed since April – 2021 in Assam.
> NH works of 829 km length with a total cost of Rs. 31,384 crore currently under implementation. > Additionally, projects with length 1,772 km and total capital cost of Rs. 45,090 crore planned for award by 2024-25. Key National Highway Projects in Assam > 4-Lane connectivity to Itanagar: 166 km awarded at a cost of Rs. 5,481 crore with 162 km completed so far > 4-Laning of Numaligarh – Dibrugarh: 183 km awarded at a cost of Rs. 5,653 crore with 129 km completed so far > 4-lane bridge over Brahmaputra river between Dhubri and Phulbari on NH 127B (19 km at a cost of Rs. 4,997 crore): Physical Progress 37.7% |
> To further augment road infrastructure, more economic corridors are also being planned.
> 3,500 km of National Highway works in the state of Tamil Nadu at an investment of Rs. 1.03 lakh crores. These include Madurai-Kollam corridor, Chittoor Thatchur corridor. Construction will start next year. |
45. Through the development of #EconomicCorridors in Tamil Nadu, the integrated transport system is designed to stimulate economic development.
Economic Corridors
| Progress so far: | Announcement |
| > NH works of 776 km with a total capital cost of Rs. 7,476 crore completed since April 2021 in Tamil Nadu.
> NH works of 1,949 km length with a total cost of Rs. 54,566 crore are currently under implementation. > Additionally, projects of 1,934 km length with a total capital cost of Rs. 81,393 crore are planned for award by 2024-25. > Chittoor-Thatchur corridor (116 km): All packages awarded; likely completion by FY 2025-26. > Madurai-Kollam corridor (199 km): Tirumangalam-Rajapalayam section (72 km at the cost of Rs. 1,672 crore) awarded in March – 2022. |
> To further augment road infrastructure, more economic corridors are also being planned.
> 3,500 km of National Highway works in the state of Tamil Nadu at an investment of Rs. 1.03 lakh crores. These include Madurai-Kollam corridor, Chittoor Thatchur corridor. Construction will start next year. |
46. Through the development of #EconomicCorridors in Kerala, the integrated transport system is designed to stimulate economic development.
Economic Corridors
| Progress so far: | Announcement |
| > NH works of 57 km with a total capital cost of Rs. 909 crore completed since April 2021 in Kerala.
> NH works of 833 km length with a total cost of Rs. 60,764 crore are currently under implementation. > Additionally, projects of 1,292 km length with a total capital cost of Rs. 59,285 crore are planned for by 2024-25. > Mumbai-Kanyakumari Corridor (691 km, Rs. 59,156 crore): Out of 663 km in Kerala, 583 km awarded; 159 km completed so far. |
> To further augment road infrastructure, more economic corridors are also being planned.
> 1,100 km of National Highway works in the State of Kerala at an investment of Rs. 65,000 crones, including 600 km section of Mumbai – Kanyakumari corridor in Kerala. |
47. Through the development of #EconomicCorridors in West Bengal, the integrated transport system is designed to stimulate economic development.
Economic Corridors
| Progress so far: | Announcement |
| > NH works of 615 km with a total capital cost of Rs. 9,461 crore completed since April – 2021 in West Bengal.
> NH works of 580 km length with a total cost of Rs. 18,157 crore are currently under implementation. > Additionally, projects of 1,613 km length with a total capital cost of Rs. 46,367 crore are planned for award by 2024-25. > Kolkata-Siliguri Corridor: 279 km constructed before Bharatmala Pariyojana; additionally four – lane widening of 123 km at the cost of Rs. 4,663 crore is currently under construction with likely completion by FY 2024-25. |
> To further augment road infrastructure, more economic corridors are also being planned.
> 675 km of highway works in the state of West Bengal at a cost of Rs. 25,000 crores, including upgradation of existing road-Kolkata-Siliguri. |
48. Bharatmala Pariyojana enhances connectivity by optimising efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps.
Bharatmala Pariyojana
| Progress so far: | Announcement |
> 26,418 km at a cost of Rs. 8.53 lakh crore awarded till November 2023
|
> More than 13,000 km length of roads, at a cost of Rs. 3.3 lakh crore, has already been awarded under the 5.35 lakh crore Bharatmala Pariyojana project, of which 3,800 km have been constructed. By March 2022, we would be awarding another 8,500 km and completing an additional 11,000 km of national highway corridors. |
49. National Ropeways Development Programme aims to improve connectivity and convenience for commuters, as well as promoting tourism in the hilly areas.
National Ropeways Development Programme — Parvatmala Pariyojana
| Progress so far: | Announcement |
| > Ropeway projects of 60 km length planned for award by FY 2023-24.
> Out of this, Ropeway project of 3.85km at Varanasi is under construction. > Bids received for 2 ropeway projects (3.2 km) viz Bijli Mahadev (2.34 km) and Dhosi Hill (0.88 km). > 30 km of ropeway projects under bidding (7 projects viz. Brahmagiri – Anjaneri, Tikitoriya Mata Temple, Sangam (Prayagraj), Mahakaleshwar Ujjain, Shankaracharya Temple, Gaurikund – Kedarnath & GovindGhat – Ghangaria – Hemkund Sahib). |
> As a preferred ecologically sustainable alternative to conventional roads in difficult hilly areas, National Ropeways Development Programme will be taken up on PPP mode. The aim is to improve connectivity and convenience for commuters, besides promoting tourism. This may also cover congested urban areas, where conventional mass transit system is not feasible. Contracts for 8 ropeway projects for a length of 60 km will be awarded in 2022-23. |
50. Ministry of Road Transport & Highways @MORTHIndia has successfully monetised assets through National Monetisation Policy to complement the public resources.
National Monetisation Policy
| Progress so far: | Announcement |
> Rs. 73,126 crore realised till November 2023 through innovative ways of financing, incl. TOT, InvIT & Project based Financing.
> Additionally, Rs. 15,968 crore under realisation through TOT during 2023-24. |
> Monetising operating public infrastructure assets is a very important financing option for new infrastructure construction.
> A “National Monetization Pipeline” of potential brownfield infrastructure assets will be launched. An Asset monetization dashboard will also be created for tracking progress and providing visibility to investors |
51. The launch of Vehicle Scrappage Policy marked a significant milestone in India’s development journey, which will phase out unfit and polluting vehicles in an environment-friendly manner.
Vehicle Scrapping policy: Voluntary Vehicle-Fleet Modernisation Programme
| Progress so far: | Announcement |
| > MORTH has released multiple notifications regarding recognition, regulation, and control of ATSs and RVSFs since 2021.
> 86 Registered Vehicle Scrapping Facilities (RVSFs) in 16 States UTs approved to date of which:
> 103 Automated Testing Stations (ATSs) in 10 States 1 UTs approved to date of which:
> Additionally, 137 ATSs are planned through RFP by 10 States. > Motor Vehicle Tax Concession against certificate of deposit (CDs) announced by 19 States / UTs. > Waiver of Liabilities on vehicles scrapped announced by 16 States / Las. > Registration Fee announced and implemented Pan-India. > IT modules to manage end-to-end operations of ATS and RVSF live on Vahan. > MSTC portal for auctioning of government vehicles and NCDEX portal for trading of CDs made operational. |
> We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This will help in encouraging fuel-efficient, environment friendly vehicles, thereby reducing vehicular pollution and oil import bill. Vehicles would undergo fitness tests in automated fitness centres after 20 years in case of personal vehicles, and after 15 years in case of commercial vehicles. Details of the scheme will be separately shared by the Ministry! |
52. Under the Vehicle Replacement policy, the Government is creating an incentive-based ecosystem to systematically and smoothly scrap older vehicles.
Vehicle Replacement
| Progress so far: | Announcement |
| > 44,900 vehicles scrapped till date at Registered Vehicle Scrapping Facilities (RVSFs) of which -28,100 are Government-owned vehicles which are older than 15 years.
> Incentives worth Rs. 2,000 crore extended to State Governments for FY 2022-23 under Department of Expenditure (DoE) ‘Scheme for Special Assistance to States for Capital Investment’.
> DoE’s Scheme further extended for FY 2023-24 with a larger incentive of Rs. 3,000 crore on defined milestones such as scrapping of Government vehicles, announcing citizen incentives and setting up Automated Testing Stations (ATS)
|
> Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy mentioned in Budget 2021.22, I have allocated adequate funds to scrap old vehicles of the Central Government.
> States will also be supported in replacing old vehicles and ambulances. |
53. PLI Scheme for Speciality Steel gives a boost to high grade Specialty Steel with increased capacity, employment generation, and minimising dependence on imports.
Production-linked Incentive (PLI)
Scheme for Specialty Steel
| Progress so far: | Announcement |
| > Union Cabinet approved PLI scheme for Specialty Steel at an outlay of Rs. 6,322 crore on 22.07.2021.
> Scheme applicable from FY 2023-24 (with incentive disbursement in FY 2024-25) upto 5 years. The scheme document notified in Gazette of India on 29.7.2021 and guidelines were published on 20.10.2021. > Government signs Memorandum of Understanding (MoU) with 27 companies covering 57 projects with a total investment of Rs. 29,530 crore and capacity addition of 24.78 million tonnes. > Actual investment up to Q2 FY 2023-24 is Rs. 10,730 crore with total employment generation of 3,785. > Incentive disbursement will commence from FY 2024-25 onwards. |
> For a USD $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis_ Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs.1.97 lakh crore, over 5 years, starting in FY 2021-22. This initiative will help bring scale and size to key sectors, create and nurture global champions, and provide jobs to our youth. |
In summary, the government’s announcements and subsequent actions reflect a multi-faceted approach to promoting economic growth, supporting specific industries, and providing relief to individual taxpayers. As the Interim Union Budget 2024 approaches, it will be crucial to assess the overall impact and effectiveness of these measures in achieving the desired objectives.
