Government of India has undertaken several schemes/initiatives to promote the Manufacturing sector. The growth of the manufacturing sector was adversely affected due to pandemic.
Government of India has undertaken various steps to promote the sector and to boost domestic and foreign investments in India.
These include the introduction of Goods and Services Tax, reduction in Corporate tax, interventions to improve ease of doing business, FDI policy reforms, etc.
The government has also taken measures for reduction in compliance burden, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP), to name a few.
Keeping in view India’s vision of becoming ‘Atmanirbhar’ and enhancing India’s Manufacturing capabilities and Exports, an outlay of INR 1.97 lakh crore (over US$ 26 billion) has been announced in Union Budget 2021-22 for PLI schemes for 14 key sectors of manufacturing.
Starting from fiscal year (FY) 2021-22. With the announcement of PLI Schemes, significant creation of production, skills, employment, economic growth, and exports is expected over the next five years and more.
The reforms taken by Government have resulted in increased Foreign Direct Investment (FDI) inflows in the country.
FDI inflows in India stood at US $ 45.15 billion in 2014-2015 and have continuously increased since then, and India registered its highest-ever annual FDI inflow of US $ 84.84 billion (provisional figures) in the financial year 2021-22.