In her second budget speech as Finance Minister, Nirmala Sitharaman on Saturday announced a new scheme to boost the manufacturing of electronic equipment in India. Stating that the details of the scheme will be soon announced, she said that the scheme can be adapted to manufacture medical equipment too, thus expanding the scope and garner more investment in India. She added that these moves were aimed at boosting India's employment in a competitive system.
"India needs to manufacture net-worth products that will make it a part of the global value chain which in turn will get more investment and generate more employment. Electronic manufacturing sector is competitive and India must attract investors to boost domestic manufacturing. Here, I propose a new scheme to boost manufacturing of electronic phones, equipment, and semiconductor equipment and can be adapted to medical equipment manufacturing too," she said.
In a bid to boost export, specifically in the textile industry, Sitharaman launched the Nirvik scheme - allocating funds of Rs. 1480 crores. Moreover, she also proposed refunding exporters' duties levied which were not covered under any scheme till now. Nirvik will provide higher insurance cover, reduction in premiums for small exporters and simplify procedure for claims settlement.
" We export textile worth $16 billion every year. To position India as a global leader in technical textile a new scheme is proposed with a four-year implementation period 2020-21 to 2023-24 at an estimated outlay of Rs. 1480 crores. To achieve higher export credit a new scheme named Nirvik is launched from this year," she said.
Explaining Nirvik, she said, "It provides for higher insurance cover, reduction in premiums for small exporters and simplified procedure for claims settlement. It is proposed to refund electronically duties levied on exporters such as electricity, use of transportation which are not refunded by any other mechanism." She also announced that the Centre and State are working to make every district an export hub by providing a unified platform for the procurement of goods and work through a portal. While 3.2 lakh vendors are already on the portal, Sitharaman allocated Rs 27300 crore for the development and promotion of industry and commerce for this year.
In preparation to the budget, the Chief Economic Advisor Krishnamurthy Subramanian on Friday presented the Economic Survey 2020 - charting a path to turn around the current downward trend of GDP growth towards a $5 trillion economy. In a major step, the Survey pegs India's GDP growth at 6-6.5% rather than the 4.8% projection by the IMF for 2020-21. He also spoke of how difficult 2019 was for the Indian economy, but relied on India's growth with macroeconomic stability over the last five year (Avg GDP: 7.5%, Inflation: 4.5%), estimating that the economy can rebound to $5 trillion goal.