India – A Global Investment and Manufacturing Hub: FY 2021 Update
Recently India's economic reforms structure has been taking shape with the government planning extensively to promote business sector through progressive initiatives. The Union government is aiming to achieve World Bank's top 50 nations of doing business rank, after successfully climbing upto 63rd place in 2020, from a below average rank of 142nd in 2015.
Government of India has boosted the new business setup category by providing government funding through multiple incubation centers, tax benefits and production and export based incentive schemes to promote the manufacturing sector. This has resulted into several major players, including Apple and Xiomi to setup manufacturing clusters in India.
The government is in talks with nearly 1,000 businesses that are willing to relocate to India, majority of which are from China. Additionally, the government's push to corporate sector by slashing taxes to 25.17% in September 2020, is anticipated to attract FDI in coming days. In an attempt to promote manufacturing sector, the government has reduced the applicable tax to 17%, which is the lowest in entire South East Asia. Cumulatively, these efforts by the government is anticipated to further improve nation's business sector and will offer multiple growth opportunities for local as well as global investors.