Perspective - Decoding Budget 2022-23: Make in India Roadmap

Context: In this episode of the Perspective Prog. based on the 'Decoding Budget 2022-23: Make in India Roadmap'. Manufacturing and MSME are crucial to India's growth and this year's Budget has several initiatives to promote India as a manufacturing hub in clean-tech manufacturing, and self-reliance in select sectors. 

• This includes the extension of concessional tax regime of 15% tax for newly incorporated domestic manufacturing companies till 31 March 2024 , continuation of push for high-efficiency module manufacturing through the PLI scheme allocation of 19,500 crore rupees, promotion of Exports by replacing the existing Special Economic Zone (SEZ) policy with a new regulation and promotion of Private sector investments in the battery or energy-as-a-service concept for improving the EV ecosystem. 
• The defence manufacturing sector is another large beneficiary of this year’s budget with 68% of the capital procurement budget being earmarked for the domestic industry in next financial year which should bolster investments in domestic manufacturing in this key sector. 
• The Aatmanirbhar Bharat Abhiyan and Make in India initiatives have also got further fillip through the phasing out of concessions in the imports of capital goods for certain products where sufficient domestic manufacturing capacity is available.