SME Times News Bureau | 20 Nov, 2019
In a bid to attract global manufacturing giants
such as Tesla and over 300 others like it, the Centre plans to simplify and
incentivize their entry into India.
The proposal which is still under final phase of planning and streamlining is
meant to spur investment growth in India, especially in the area of
manufacturing to create jobs, sources told IANS.
Both the central and state governments have discussed the plan with other
The plan was conceived at a meeting called by the Department for Promotion of
Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry
and Invest India with stakeholders and state governments here in the early part
Sources confirmed that incentives like provisioning of land for setting up of
manufacturing units, flexible employment rules and lower tax rate were
discussed as part of the plan.
As per the plan, the government will approach these companies informing them
about the benefits and incentives of setting up manufacturing units here in
The outreach will provide information about the various industrial promotion
schemes run by different state governments.
"The idea is to spur industrial job creating investment," a source
Sources said these steps are intended to give a push to Make in India and
manufacturing of hi-tech products like electric vehicles, ion-lithium batteries
and electronic hardware among others.
In the recent past, India was not able to capitalise on the geo-political
tensions between the US and China.
Besides, the country's improved global ranking in the 'Ease of Doing Business'
index of the World Bank to 63rd position was also widely mentioned to be an
attractive point for these companies.
In October, the annual index report -- Doing Business 2020 -- released by the
World Bank showed India as being among the top 10 improvers, stating that
"Given the size of India's economy, these reform efforts are particularly
Last year, India jumped 23 places to the 77th position on the back of reforms
related to insolvency, taxation and other areas.