Employment boost | Business Upturn

Cabinet approves PM-MITRA scheme of ₹4,445 crores to boost Textile Industry

Cheryll Jain — Wed, 06 Oct 2021 11:07:08 +0000

Union Textile Minister Piyush Goyal on Wednesday, October 6 announced the Union Cabinet’s decision to approve PM Mega Integrated Textile Region and Apparel (MITRA) park scheme which was first announced as a proposal in the Union Budget 2021.

In a media briefing to give updates on the decisions of the cabinet, it was stated that the government has approved the scheme to set up seven integrated textile parks in the country to create world-class infrastructure and boost the textile Industry’s global reach.

“The move is inspired by the 5F vision of Prime Minister Narendra Modi — Farm to Fibre to Factory to Fashion to Foreign,” said Piyush Goyal while announcing the cabinet’s decision. The PM-MITRA scheme envisions to enable the textile industry to become globally competitive, draw large domestic and foreign direct investments, promote employment generation in the country and increase textile exports.

As part of the scheme, the Centre will provide Rs. 4,445 crores over a period of 5 years to develop MITRA parks in a public-private partnership model through a special purpose vehicle which will be owned by the state and central government. The parks will be set up at various greenfield and brownfield sites for which the Centre will provide a capital of Rs. 500 crores and Rs. 200 crores respectively, in the states drawn by the PM-MITRA scheme.

According to Goyal, around ten states have already shown keen interest in the scheme till now and are in talks with the Centre to follow up on the same. He also stated that the PM-MITRA scheme will lead to the creation of direct employment for 7 lack individuals and indirect employment for 14 lakh individuals.

Karnataka launches an engineering research and development policy

Sanah Shah — Tue, 02 Mar 2021 11:57:57 +0000

Karnataka inaugurated the Engineering Research and Development (R&D) Policy 2021 that has likely to generate employment up to 50,000 new jobs and direct investment into the state beyond Bengaluru within the next five years.

The policy, released by Karnataka’s Department of Electronics, IT & Biotechnology, will also look at increasing the state’s contribution to ER&D to 45 percent in the five-year period. It was created along with the IT industry structure, NASSCOM.

Ashwath Narayan CN, Deputy Chief Minister, Karnataka, during the launch of the policy said, “The State’s ER&D industry has witnessed accelerated growth over the recent years, and Karnataka has evolved to be the preferred home. In recognition of the same, the Government of Karnataka has taken the lead in coming up with a progressive ER&D Policy.”

ER&D Market in India

Karnataka is one of the largest donators to the ER&D industry, which is one of the fastest-growing sectors in IT. At $31 billion, India holds about 30% market share in global ER&D outsourcing services. It is expected to touch $63 billion by 2025.

Policy initiatives

The government will put money into skilling, improving academia and industry collaboration, and upgrade IP creation. Engineering R&D entrepreneurs and startups will also be supported through the policy by better access to investment opportunities.

Subsidies

With respect to subsidies, the government will provide up to 50% reimbursement of rentals up to Rs 2 crore to MNC entity ahead of Bengaluru Urban district. It will also offer recruitment assistance and up to 20% subsidy up to Rs 2 crore for investing in the State beyond Bengaluru.

Priority sectors through the policy include aerospace and defence, automotive, biotechnology and pharmaceuticals, semiconductors and software products.

To advance innovation, the government will fund colleges for projects and will also invest in the cost of developing industry-oriented courses in colleges and universities.

What industries and markets can expect from ‘like never before’ Budget?

Devanshu Singla — Thu, 21 Jan 2021 08:29:08 +0000

Finance Minister Nirmala Sitharaman will announce the Budget FY2021-22 on February 1, 2021. The FM has already raised expectations by promising a budget “like never before”. If it truly turns out to be “like never before”, we will have the opportunity to rejoice like never before.

With the world’s largest immunisation programme currently underway in the country, this is the right time further accelerate efforts to revive the economy. According to a survey by Ficci and Dhruva Advisors, India Inc expects the government to continue with its policy focus on strengthening the manufacturing ecosystem, promoting research and development, and incentivising futuristic technologies in the upcoming budget.

This year we can witness the extensive budget shortfall ever, even when the growth trajectory has turned positive and the economy is looking lost in the revenue is due to the expenditure cuts. In terms of budget estimates, this year’s expenditure would be the decade’s lowest.

Demand has improved in a few sectors of the economy, but there is a need to watch this trend to see if the improvement continues in a sustained manner.

Enhancing Sec 80c limit to Rs 2.5 lakh will help boost savings, as also augur well for the housing sector. Similarly, a higher Sec 80D limit will strengthen medical coverage in our country.

Production-linked incentives (PLI) are an excellent scheme to boost manufacturing. We can expect more incentives to boost manufacturing, exports and FDI, as also tailored PLI schemes in new sectors like laptops, desktops, IoT devices, and white goods like LED products and ACs.

Any further cuts in income tax rates or corporate tax rates are unlikely but a major disinvestment drive in FY22 is expected.

Steps like a stimulus for high employment-generating sectors like auto, textiles, and real estate, 1 per cent GST cap for under‐construction projects, additional deductions for home buyers etc. will send positive vibes in the markets.

LTCG tax exemption and reduction in Securities Transaction Tax (STT) and Commodity Transaction Tax (CTT) is on the top of Capital market’s wishlist. Markets fear the enhance of LTCG and introduction of wealth tax in some form.

The government’s top priority for 2021 should be on pulling the nation through the final phase of the pandemic and enable quicker economic recovery to pre-COVID-19 levels of growth.

The budget must prioritise growth-oriented measures over fiscal considerations. It must focus on employment generation and on putting more money in the hands of consumers that will boost demand and drive growth.

Improving the ease of doing business, including ease of administration of the tax regime, are key asks of the industry to promote India as a global manufacturing hub. The budget proposals will not only impact the near future but could also potentially shape India’s long-term growth trajectory.

Government to use Rs 23,810 crores under ABRY to improve employment

Shlok Arya — Thu, 10 Dec 2020 05:46:42 +0000

On December 9, the Union Cabinet approved Rs 22,810 crore under Atmanirbhar Bharat Rojgar Yojana (ABRY) that aims at improving employments and fresh hiring.

An official statement said, “The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has given its approval for Atmanirbhar Bharat Rojgar Yojana to boost employment in the formal sector and incentivize the creation of new employment opportunities during the COVID-19 recovery phase under Atmanirbhar Bharat Package 3.0.”

Additionally, it stated, the cabinet has allotted Rs 1,584 crores for expenditure for the current financial year. Moreover, for the Scheme period 2020-2023, the government has allotted 22,810 crores.

In a Cabinet decision, Labour Minister Santosh Gangawar said the government will provide subsidies for two years. In these years, new employees engaged on or after October 1, 2020, and up to June 30, 2021.

The government will contribute 24 percent of basic wages towards EPF (employees provident funds), 12 percent of employees’ contribution, and 12 percent employers’ contribution.

An employee who earns less than Rs 15,000 and is not a part of establishing registered with the Employees’ Provident Fund Organisation before October 1, 2020, also did not have a Universal Account Number or EPF Member account number prior to October 1, 2020, can be avail the benefits.