Budget 2024 for Manufacturing Sector: Expectations, Impact, Past 5 Years Union Budget Declaration & Highlights

Manufacturing Sector

Government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure.
For promoting green growth, a new scheme of bio-manufacturing and bio-foundry will be launched.

Who Got What

Manufacturing Sector

Budget’s indirect tax proposals aim to boost domestic manufacturing.
New co-operatives that commence manufacturing activities till 31.3.2024 shall get the benefit of a lower tax rate of 15%.
Customs duty on certain TV parts was reduced to boost TV manufacturing while making it less expensive for consumers.
Basic customs duty on electric kitchen chimneys is being increased to 15% to encourage domestic manufacturing.
Exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued.

Manufacturing Sector

It has been revealed that new domestic manufacturing companies have the option to pay tax at a rate of 15% without claiming deductions if they start manufacturing by March 31, 2023.
Specific startups have been notified about the opportunity for a tax holiday for three out of their initial ten years if they incorporate by April 1, 2022.
An announcement has been made to extend both deadlines by one year.

Manufacturing Sector

Union Budget 2021-22 introduced an outlay of INR 1.97 Lakh Crores (US$ 26 billion) for Production-linked Incentive (PLI) schemes spanning across 13 sectors.
Extra budgetary allocation of 0.76 Lakh Crores (US$ 10 billion) was announced specifically for the PLI scheme focusing on semiconductor manufacturing.

Manufacturing Sector

Introduced in September 2019, new provisions provide a concessional corporate tax rate of 15% to newly incorporated domestic manufacturing companies starting production by March 31, 2023.
Corporate tax rate for new companies in the manufacturing sector was notified to be reduced to an unprecedented level of 15%.
A scheme aimed at incentivizing the production of mobile phones, electronic equipment, and semiconductor packaging was announced

Manufacturing Sector

Make in India initiative claimed to have boosted mobile and parts manufacturing companies from 2 to over 268, generating significant job opportunities.
GST aimed to support small traders, manufacturers, and service providers.
Tax rate reduced to 25% for companies with turnover up to Rs 250 crore, encompassing nearly 99% of businesses, including new manufacturing companies without turnover limits