Jan 11, 2017 08:40 PM IST IST | Source: Moneycontrol.com
Budget 2017: Industrial corridors, labour-intensive sectors may get a boost
Finance minister Arun Jaitley may propose a package of tax incentives for the labour-intensive leather, gems and jewellery sectors as part of the government's signature "Make in India" initiative to boost manufacturing, create jobs and revive exports.
Besides, India's plans to create its own versions of China-style mega industrial cities peppered across the country equipped with production units, public utilities, residential areas, schools and hospitals will likely get a big fiscal push in Budget 2017-18.
There is expectation that outlay for industrial corridors will be substantially raised from Rs 1448 crore in 2016-17, signalling the government's intent to use these mega enclaves as one of the major vehicles to push the `Make in India' initiative.
The country has notified five major industrial corridors - Delhi-Mumbai Industrial Corridor (DMIC), Amritsar Kolkata Industrial Corridor (AKIC), Chennai Bengaluru Industrial Corridor (CBIC), Visakhapatnam-Chennai Industrial Corridor (VCIC) and Bengaluru- Mumbai Economic Corridor (BMEC), spread across 15 states.
The budget may also propose to remove minimum alternate tax (MAT) for enterprises that operate out of the 200-odd special economic zones (SEZs) in the country. Currently, units operating out of these duty-free enclaves pay MAT at the rate of 18.5 percent on their book profits.