Did you know that India aims to become a manufacturing hub of the world? Yes, the Make in India programme is tapping into the potential of a wide range of industry sectors to maximize India’s manufacturing activities and fuel nationwide economic development.
The initiative, launched in 2014, encourages Indian companies to manufacture in India. The programme also received a thrust from the Union Budget 2021-22 for advancing local industries. So, let us have a look at the top business sectors in 2021 benefiting from this programme.
The Government of India has decided to impose customs duties on certain imported parts and subparts of mobile phones and chargers to give Indian manufacturers a boost. This way, the manufacturers in India will be given a chance to produce those parts locally.
To direct the momentum towards the country’s electronics manufacturing sector, the government has ruled that companies that manufacture Apple iPhones and other domestic smartphone brands like Lava, Micromax, and Optiemus Electronics will get up to 6% incentives on manufacturing their products in India.
In 2021, domestic solar manufacturing is expected to soar. The union budget declared Rs. 3.5 lakh crore of investments into the power sector, Rs. 1,500 crore for the Indian Renewable Energy Development Agency (IREDA), and Rs. 1,000 crore investments for the Solar Energy Corporation (SEC).
The aim is to scale up the capacity of manufacturing home-grown solar cells and solar panels. Besides, the increase in duty on solar inverters from 5% to 20% and on solar lanterns from 5% to 15% should boost production, create demand, and usher in revenue.
The government’s decision to reduce the basic customs duty on nylon chips, nylon fibre, and yarn by 5% is expected to multiply the growth of the Man-Made Fibre (MMF) sector. Its market size could reach $430.66 million in June 2021, indicates the Fibre2Fashion’s market analysis. The move can increase MSME participation. Moreover, with access to business loans, local manufactures in the textile industry can quickly scale their operations.
The Indian government’s decision to allow the setting up of One Person Companies (OPCs) abolishes the need for finding a co-founder, and it also allows Non-Resident Indians (NRIs) to set up such companies. Entrepreneurs can thus easily raise capital easily with access to credit. Especially if they opt for business finance, they will be able to avail of attractive business loan interest rates.
Additional Read: How to Qualify for Startup India Action Plan
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