In order to push domestic manufacturing growth under 'Make in India' programme, industry leaders and top government officials have suggested easier land acquisition norms, duty cuts and fiscal incentives for research and development especially in sectors like defence. A high-level meeting was recently held where industry leaders and government officials collectively made presentations before Prime Minister Narendra Modi on sector-specific strategies to push manufacturing as part of the 'Make in India' programme.
Besides, they have also suggested a comprehensive gold policy including mining, gold metal loans and setting up of special economic zones for sale of rough diamonds by mining firms. Further, the import duty on gold and silver must be reduced to 2% from the current 10%. In order to boost exports, it was suggested that import duties should be reduced on processed pearls to 2.5% from 10% and tax on cut and polished coloured gemstones be removed.
Sector front, industry and government officials recommended financial incentives like tax holidays and incentivisation for R&D activities for defence and aerospace sectors. For basic metals, it was suggested that the customs duty on steel products be increased, while import duty be removed on raw materials or ores to boost manufacturing and attract investments.
During April to October period of this fiscal, Indian industrial output grew by 1.9% as compared to 0.2% in the same period of previous fiscal. The manufacturing output which accounts for around 75% of the IIP index, grew by 0.7% in the reported period as against -0.1% contraction in year ago period.
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