Tarun Bajaj, economic affairs secretary at the Ministry of Finance, told a virtual conference that incentives would be offered to sectors to push manufacturing
and help struggling industries.
The government earlier announced production linked incentives for large scale electronic goods makers for five years, to attract investments in mobile phone manufacturing
and electronic component units.
Incentives have also been announced for pharmaceutical companies for production of bulk drugs and on medical devices.
Speaking at a virtual conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday, finance ministry official said the government was expecting a “V” shape economic recovery beginning next fiscal year.
Reuters earlier reported that India is drawing up an incentive scheme for the autos sector aimed at doubling exports of vehicles and components in the next five years.
Industry and government sources said sectors such as textile and food processing manufacturers could be offered production linked incentives.
The latest data on 14-15 economic indicators including railway freight and tax collections showed a pick up in economic activities, Bajaj said, adding the government was open to borrow more from the market to meet spending targets for infrastructure projects.
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