India Union Budget 2016-17 – Main Propositions for Make in India Programme

“Make In India (MII)” is an Indian government’s initiative to encourage multi-national and domestic companies to manufacture their products in India. Several propositions like incentivizing domestic value addition for boosting MII have been announced in union budget 2016-17 by finance minister, Arun Jaitley. 

Here are major propositions announced for this initiative…

• Finance Minister proposed to assist the propagation of start-ups through 100% deduction of profits for 3 out of 5 years set up during April 2016 to March 2019.

• Simplification in the customs and excise duty procedures is proposed to improve competitiveness of domestic industry in sectors like Maintenance Repair & Overhauling (MRO) of ship, aircrafts, etc., paperboard & newsprint, paper, petrochemicals, mineral fuels & oils, textiles, defence production, capital goods and Information Technology hardware.

• With a view to promote “Make In India” campaign, government has planned to give accorded ‘Residency Status’ to foreign investors on certain conditions. Currently, these investors are granted business visa only up to 5 years at a time.

• To strengthen the MII initiative, an allocation of Rs.1,804 crore granted towards the scheme for Investment Promotion and Amended Technology Upgradation Fund.

• Government has proposed 4% charge on populated PCBs for manufacture of personal computers. Earlier it was exempted.

• Several propositions have been announced in budget to boost ‘Ease of Doing Business’ initiative including 13 cesses levied by other ministries or departments.

• CENVAT Credit Rules, 2004 being amended to improved credit flow, reduce the compliance cost plus litigation. Several other amendments would take place in it. This will come into effect from 01.04.2016.

• Basic Custom Duty (BCD) rates increased in the range of 2.5% to 10% for imported finished products and reduced from about 10% to a lower rate/nil rate for inputs across various sectors.

The Government of India has proposed changes in customs and excise duty rates on certain inputs, intermediaries & components, raw materials and other goods that would help in boosting its “Make In India” initiative. After successfully implementing this programme, India would emerge as the top destination for foreign direct investment globally, surpassing United States and China. To get customs and excise rates on all the products, do follow the next post on India union budget 2016-17. 

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