- 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 with 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.
The news is from the internal sources of the government and currently, the proposal is under the consideration of the Finance Ministry. For the last few weeks, there have been reports about the government working at a fast pace to lure the companies wishing to relocate their plant from China. If the government succeeds in doing this, then it will be a big step, and this will really make many companies consider doing business in India, which will provide huge employment opportunities as all the sectors mentioned above are labor-intensive.