SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Proposed investment allowance for manufacturing sector to boost economic growth: CMIE

18 Mar 2013 Evaluate

The Centre for Monitoring Indian Economy (CMIE), in its recent report on Indian economy has said that the government’s move to provide investment allowance of 15 per cent to manufacturing companies will give the much-needed push to the industry as well as the economy. 

In the Union Budget, 2013-14, the finance minister has proposed the allowance of 15 per cent to manufacturing companies that invest more than Rs 100 crore in plant and machinery between April 1, 2013 to March 31, 2015. The growth in output of manufacturing sector declined from 9 per cent in FY11 to 3 per cent in FY12 and has now gone down further to a mere 0.9 per cent in the first eleven months of this fiscal.

The report has further stated that the investment demand in India has been declining from the last two years, which is reflected in the slowing growth of gross fixed capital formation (GFCF), fall in production of capital goods, a dramatic fall in announcement of new projects and a consequent slowdown in bank credit. ‘As implementation of manufacturing projects gathers pace, the demand for steel, cement, machinery and other construction-related items is expected to pick up. Also, the process of implementation of these projects will generate fresh employment, which in turn will boost consumption demand. Around 250 manufacturing projects worth Rs 3.1 lakh crore, with investment of over Rs 100 crore each, are scheduled to get completed in FY14, while the other 158 projects worth Rs 1.8 lakh crore are expected to be completed by FY15.

It also pointed out that those projects which have already incurred expenditure and are scheduled for completion in FY14 and FY15 may not be able to avail of this benefit. These are some projects, which are scheduled for completion in FY14, have already incurred two-third of their expenditure, while those expected to complete in 2014-15 must have incurred at least half of their expenditure by now. Hence, projects with total investment of less than Rs 300 crore may not qualify for the investment allowance in 2013-14 and those with total investment of less than Rs 200 crore may not qualify for the allowance in FY15.

 

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×