The government is firming up employment-linked incentives for manufacturing sectors to increase labour absorption. The focus is on the sectors identified as part of the ‘Make In India’ initiative, such as leather, textiles, construction, automobiles and auto components and defence.Suggestions, including incentives such as government subsidies and tax concessions, will be submitted to Prime Minister Narendra Modi, official sources told The Hindu . Inputs have been invited from the NITI Aayog, State governments and various Central ministries.
The idea is also to encourage self-employment, the sources said. They said some of the suggestions will be included in the ‘start-up policy’ to ensure the creation of an eco-system for manufacturing sector start-ups. There could also be sops — such as tax exemption — for skill providers.
This follows the announcement made by the Prime Minister in his Independence Day speech last August that the Centre would formulate new schemes for new units linking it with employment and assistance of the government.
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Some states also have employment-linked incentives. Karnataka, in its Industrial Policy 2014-19, provides incentives and concessions based on employment and investment. Andhra Pradesh, in its Industrial Development Policy 2015-2020, stated that projects with an investment of a minimum of Rs 500 crore or generating direct employment of 2,000 will be granted mega industry status.