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Informist, Thursday, Sep 5, 2024

 

NEW DELHI – The government wants to encourage the sunrise sectors to be the flag-bearer of the employment-linked incentive schemes announced in the Budget for 2024-25 (Apr-Mar), Finance Minister Nirmala Sitharaman said today. "The emphasis is on sunrise sector, energy, fintech and innovation-related startups."

 

 

The Indian sunrise sector, with support from the government's production linked incentive scheme, is proving to be the leader, Sitharaman said in Chennai. "I would think the industry should seize this moment and leap forward so that you can compete globally."

 

In the Budget, presented in July, Sitharaman announced three employment-linked incentive schemes as part of the Prime Minister's package. The Employees Provident Fund Organisation is the nodal body for rolling out the benefits under the three schemes.

 

Under the first scheme, the government will provide one month of wages in three instalments to first-time employees in all formal sectors up to 15,000 rupees. Any first-time employee with a salary less than 100,000 rupees will be eligible for this scheme. The second scheme will incentivise additional employment in the manufacturing sector, linked to the employment of first-time employees. 

 

The third scheme aims to provide support to employers in all sectors. The government will reimburse employers up to 3,000 rupees per month for two years towards their EPFO contribution for each additional employee. The government is yet to roll out these schemes.

 

"In some sunrise sectors, India has the leading advantage. Because of that kind of effort and because of the policy of the government to give production linked incentives to those 13-14 sunrise sectors, you feel there is a rapid growth in those sectors," Sitharaman said. 

 

The government has been running production-linked incentive schemes in 14 sectors, including large-scale electronics, information technology hardware, automobiles, pharmaceuticals, bulk drugs, and textiles. The Cabinet has approved an outlay of 1.97 trln rupees for the incentive schemes operational for a period of five to seven years.

 

These schemes aim at making domestic manufacturing globally competitive. Under the schemes, the government offer incentives to companies on incremental sales from products manufactured in India. So far, the government has released only 28.7 bln rupees out of 1.97 trln rupees, as per the latest data given by the Department for Promotion of Industry and Internal Trade.  End

 

Reported by Srijita Bose and Krity Ambey 

Edited by Akul Nishant Akhoury

 

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