New Delhi: The NDA government is mulling over giving a major push to the manufacturing sector in the forthcoming budget to ensure the success of ‘Make In India' campaign.
Defence minister Manohar Parrikar had earlier said that government was planning a separate policy on “Make In India”, which would stress on providing equal opportunity for all stakeholders.
While talking to reporters a government official said, electronic goods, medical devices, capital goods, and textiles machinery are among the sectors expected to get fiscal sops in the budget. It is also working on ironing out the issues through a separate policy for the defence sector, the official added.
Parrikar has earlier said that government was planning a separate policy on Make In India”, which would stress on providing equal opportunity for all stakeholders.
The official also said that a fund to acquire state of the art technology in capital goods sector, medical devices and electronic goods is likely to be created. This would make the domestic industry self-reliant by letting them manufacture these heavy machines in the country itself.
The capital goods sector, as gauged by the index of industrial production (IIP), has been largely in the negative zone beginning 2011-12 barring a few aberrations where it had shown growth.
The capital goods sector has performed abysmally in 2011-12 barring a few aberrations where it had shown growth.
Government is also considering to give electronic sector a shot in the arm, India imports electronic products worth $16 billion annually and as per the government estimates it is likely to rise to $300 billion to address its overall demand of $400 billion electronic goods.
In its bid to bring down the dependence on imports, government has already issued guidelines to all ministers to prefer domestically-manufactured electronic products in government procurement.
“Fiscal incentives are being worked out for the sector while the government is also looking at correcting the inverted duty structure,” the official said.