Finance Minister Urges Indian Industry To Expand, Cites Govt Incentives
(MENAFN- KNN India)
New Delhi, Sep 6 (KNN) Finance Minister Nirmala Sitharaman has called upon Indian industries to expand their capacity and meet the growing needs of the country by leveraging government incentives and tax cuts implemented since 2019.
Speaking at the Southern India Chamber of Commerce and industry in Chennai, Sitharaman emphasised that credit availability is no longer a constraint and encouraged businesses to capitalise on India's emerging leadership in new sectors and industries.
The minister referenced the corporate tax reduction of 2019, which was intended to alleviate the twin balance sheet problem and stimulate investment.
However, the anticipated industrial expansion was delayed due to the COVID-19 pandemic.
Sitharaman acknowledged China's economic achievements but cautioned against direct comparisons, citing differences in economic structures.
"We have significant capability and potential in this country," Sitharaman stated.
"Industry should seize this moment to enhance its competitiveness globally and contribute to India's growing needs,” she added.
The government has introduced several initiatives to promote industrial growth and employment.
The Union Budget 2024-25 unveiled three Employment Linked Incentive schemes as part of a larger package aimed at creating opportunities for 410 million youth over five years, with a central outlay of Rs 2 lakh crore.
Additionally, Rs 1.95 trillion has been allocated for production-linked incentives across 14 sectors.
The corporate tax cuts implemented in September 2019 resulted in a revenue loss of over Rs 1 trillion for the government in 2020-21.
The base corporate tax rate for existing companies was reduced from 30 per cent to 22 per cent, while new manufacturing firms incorporated after October 1, 2019, benefit from a rate of 15 per cent, down from 25 per cent.
(KNN Bureau)
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