Finance Minister Urges Indian Industry to Expand, Citing Govt Incentives

New Delhi, September 6 (KNN) Finance Minister Nirmala Sitharaman has urged Indian companies to expand their production capacity and meet the country’s growing needs by using government incentives and tax cuts introduced since 2019.

In a speech at the South Indian Chamber of Commerce and Industry in Chennai, Sitharaman emphasised that credit availability was no longer a constraint and encouraged businesses to leverage India’s growing leadership in new sectors and industries.

The minister referred to the corporate tax cut in 2019, which was aimed at alleviating the double-balance sheet problem and stimulating investment.

However, the anticipated industrial expansion has been delayed due to the COVID-19 pandemic.

Sitharaman appreciated China’s economic achievements but cautioned against direct comparisons, citing differences in economic structures.

“We have significant potential and opportunity in this country,” Sitharaman said.

“The industry should seize this moment to become more competitive globally and contribute to meeting India’s growing needs,” she added.

The government has introduced a number of initiatives aimed at supporting the development of industry and employment.

The Union Budget for 2024-25 has unveiled three employment-linked incentive schemes, which are part of a larger package to create opportunities for 410 million youth over five years with a central outlay of Rs 2 lakh crore.

Additionally, Rs 1.95 trillion has been allocated for production-related incentives in 14 sectors.

Corporate tax cuts introduced in September 2019 resulted in a revenue loss to the government of over Rs 1 trillion in the 2020-21 fiscal year.

The basic corporate income tax rate for existing companies has been reduced from 30% to 22%, while new manufacturing companies established after 1 October 2019 benefit from a rate of 15% instead of 25%.

(KNN Office)