Ministry of Trade, Govt of India, is proposing a tax holiday for companies bringing in new investments in India as the government explores measures to support the economy amid the coronavirus pandemic.
The proposal is currently under consideration by the Finance Ministry. The proposal is to give 10 Years tax holiday for the companies making a new investment of more than $500 mn. Such a company will have to start its operation within 3 years from 1st June 2020. Primarily the sectors like Medical Devices, Electronics, Telecom Equipment, and Other Capital Goods would be in the focus.
The second proposal is for companies that will invest more than $100 mn in labor-intensive sectors like Textile, Food Processing, Leather, and Footwear. Here the government will provide a 4 years tax holiday.