Budget announcements to promote Make in India initiatives, MSMEs: DPIIT

The budget announcements made by the government would help promote Make in India initiatives, MSMEs and budding entrepreneurs, a top official said.

Secretary in the Department for Promotion of Industry and Internal Trade Ramesh Abhishek said the proposals announced for further liberalsing foreign direct investment (FDI) norms would help attract overseas capital.

"The Budget has laid down a comprehensive roadmap to boost economic activities and promote (micro, small and medium enterprises) MSMEs, make in india and start-ups," Abhishek told PTI.

He also said steps announced for electric vehicles would help establishing India as a global hub for manufacturing of these vehicles.

"Recognising the role of foreign investment in augmenting the available pool of capital, FDI reforms and other changes in foreign portfolio investments or NRI investments have been announced," he said.

Finance Minister Nirmala Sitharaman in her Budget speech said the government will examine suggestions of further opening up of FDI in aviation, media ( AVGC - Animation, Visual effects, Gaming and Comics) and insurance sectors in consultation with all the stakeholders.

The minister has said 100 per cent foreign direct investment (FDI) will be permitted for insurance intermediaries and local sourcing norms will be eased for FDI in single brand retail sector.

Further, she proposed to provide additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles as part of efforts to accelerate adoption of eco-friendly mobility solutions.

The finance minister has also announced that customs duty is being exempted on certain parts of electric vehicles (EVs) to further incentivise e-mobility in the country.

Abhishek also said steps have been announced to eliminate delays caused in government payments to suppliers and contractors.

He said departments give payments in 10 days to suppliers and contractors under Government e-marketplace portal norms, the same can be replicated at other transactions also.