Make in India, an initiative of the Government of India, to encourage companies to invest in the manufacturing sector in India. The major objective behind the initiative was to focus on 25 sectors of the economy for job creation and skill enhancement. The initiative also aims at high quality standards and minimizing the impact on the environment. The initiative hopes to attract capital and technological investment in India.  

In the budget, presented by the Finance Minister, has raised his words for Make in India. Lets see, what contribution the budget has made for Make in India.

• Revival of growth and investment and promotion of domestic manufacturing for job creation
• Tax “pass through” to be allowed to both category I and category II alternative investment funds
• Rationalization of capital gains regime for the sponsors exiting at the time of listing of the units of REITs and InvITs
• Rental income of REITs from their own assets to have pass through facility
• Permanent Establishment (PE) norm to be modified to encourage fund managers to relocate to India
• General Anti Avoidance Rule (GAAR) to be deferred by two years
• GAAR to apply to investments made on or after 01.04.2017, when implemented
• Additional investment allowance (@ 15%) and additional depreciation (@35%) to new manufacturing units set up during the period 01-04-2015 to 31-03-2020 in notified backward areas of Andhra Pradesh and Telangana
• Rate of Income-tax on royalty and fees for technical services reduced from 25% to 10% to facilitate technology inflow
• Benefit of deduction for employment of new regular workmen to all business entities and eligibility threshold reduced
• Basic Custom duty on certain inputs, raw materials, intermediates and components in 22 items, reduced to minimize the impact of duty inversion
• All goods, except populated printed circuit boards for use in manufacture of ITA bound items, exempted from SAD
• SAD reduced on import of certain inputs and raw materials.
• Excise duty on chassis for ambulance reduced from 24% to 12.5%
• Balance of 50% of additional depreciation @ 20% for new plant and machinery installed and used for less than six months by a manufacturing unit or a unit engaged in generation and distribution of power is to be allowed immediately in the next year.

With these amendments, we hope capital and technological investment will increase in India. Also, the Indian startups will be able to survive and more jobs will be created.

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