Finance Minister Arun Jaitley in his upcoming budget speech is expected to address issues plaguing the manufacturing sector, announce measures to curb pollution and give a fresh push to the Skill India programme.
Jaitley recently talked about the need to “to put our house in order” so as to help the Indian economy continue its high-growth trajectory. For manufacturing, the budget might announce increased allocations for industrial corridors such as the Delhi-Mumbai Industrial Corridor which is likely to get Rs 4,000-5,000 crore as against Rs 1,200 crore in the last budget, sources said.
Similarly, tax benefits might come for small and medium enterprises engaged in manufacturing activity and a push for young entrepreneurs. “Also likely is a correction in the inverted duty structure,” sources said.
To curb pollution, the finance Ministry is likely to announce tax incentives for junking 15-year-old vehicles, a demand mooted by the road transport and highways Ministry. Highways Minister Nitin Gadkari has been actively engaged with stakeholders, including the finance Ministry, to help in formulating a policy.
“The government will come out with a draft Cabinet note on the proposed policy by month end,” a Senior Road Ministry official said.
The Finance Ministry is also likely to announce a Rs 500-crore package for electric vehicles, to be spent as subsidy for buying a vehicle, as well as to boost research and development in the sector along with setting up of charging stations. Besides, increased allocation for greening of highways is also on the cards.
Sources said the budget might also raise the allocation for the Skill India initiative. The programme had an allocation of Rs 1,350 crore last year under the Kaushal Vikas Yojna. Hinting at a raise, Jaitley recently said there was more than one factor supporting India. “We have potential for increasing manufacturing. We have innovative skills. Our labour cost is not rising as they are rising in China. We are not part of factor or transitions which are taking place in China,” he said.
Source: Hindustan Times
Image Courtesy: The Hindu
