Make in India Reboot Likely In Budget Including Concessional Tax Incentives 

The Centre is evaluating several measures to boost domestic manufacturing with a reboot of the Make in India scheme thrown in, the Economic Times reported.

These include bringing back the 15 per cent % oncessional corporate tax rate for new manufacturing investments, enlarging the production-linked incentive (PLI) programme, and raising the wage cap under the tax incentive provision for incremental job creation, the report said. The budget for FY 2024-25 is likely to be presented in the second half of July. A final call on the measures will be taken closer to the budget at the highest level after a detailed assessment of the cost of such policies and their impact on the ground. Read more 

Growth In Remittances From Gulf Countries Expected To Halve Next Year

The growth in remittances to India is likely to halve in 2024 to 3.7 per cent from 7.5 per cent in 2023, the Business Standard reported quoting the World Bank. 

In its latest Migration and Development Brief, the bank, however, said India’s efforts to link its Unified Payments Interface with source countries such as the United Arab Emirates and Singapore are expected to reduce costs and speed up remittances. India received remittances worth US$ 120 billion in 2023, supported by strong labour markets in the United States and Europe. “Reduced outflows from Gulf Cooperation Council countries, amid declining oil prices and production cuts, contributed to the slowdown,” the World Bank said. Remittances are projected to rise marginally to US$ 124 billion in 2024 and to US$ 129 billion in 2025. More here

Govt May Put Privatisation Plans For General Insurance Companies On Hold

The government may delay a planned privatisation of state-run general insurers, focusing instead on strengthening the three insurers-Oriental Insurance Co. Ltd, National Insurance Co. Ltd, and United India Insurance Co. Ltd-through capital support and business revival plans, the Economic Times reported.

It is expected to infuse about Rs 5,000 crore into the three insurers, shelving any privatisation plan this fiscal, said officials aware of the development. "Deliberations have been held with all stakeholders, and an announcement regarding capital support is expected in the upcoming budget," an official said. The final amount may vary but the government is committed to supporting the general insurers to further strengthen their balance sheets. More here

Security Establishment Wary Of Lifting Curbs On Chinese FDI

India's security establishment is advocating a cautious approach to any unhindered and blanket approval to the FDI proposals from China given the history of corporate behaviour of Chinese companies in the country, the Economic Times reported.

The report said while suggestions have been made to lift restrictions for Chinese FDI that were put in place during Covid, a system of risk assessment must be put in place. There must be review and monitoring, including through robust IT tools and databases, when it comes to FDI from countries of concern, the report said quoting highly placed sources. Once a system is in place, disposal of cases should take place through a time-bound mechanism, they said. More here 

Trade Unions Push For Govt-Sponsored Social Security Fund In Budget Consultations

Central trade unions have called for setting up a government-sponsored social security fund in the upcoming Budget, the Business Standard reported. 

This will help millions of unorganised, gig, platform and agricultural workers, as envisaged under the Code on Social Security 2020. “The Union government-sponsored social security fund for unorganised workers will provide them with defined universal social security schemes. These include minimum pension and other medical and educational benefits,” Amarjeet Kaur, general secretary, All India Trade Union Congress, said. The matter was also discussed with Finance Minister Nirmala Sitharaman on Monday as the unions made representations as part of pre-Budget consultation. More here

Export Credit Scheme Likely To Be Extended By Five More Years

The Centre is likely to extend a key support scheme for export credit to enhance competitiveness of India's export sector, which was hit hard by slowdown in the developed countries, the Economic Times reported.

The upcoming budget could extend the scheme for pre- and post-shipment rupee export credit by five years, the report said. The commerce and industry ministry has proposed an extension of the interest equalisation scheme beyond June 30, its sunset date, wherein manufacturer micro, small and medium enterprises (MSME) get 3 per cent benefit and exporters of 410 identified tariff lines get 2 per cent incentive. The government has allocated Rs 9,538 crore to the scheme since 2021-22 and an additional outlay of Rs 2,500 crore was given in December last year. More here