The government will announce upcoming budgetary measures to further strengthen the domestic startup ecosystem and address the issue of reverse tariffs in certain sectors to boost domestic manufacturing, official sources said. .
Fiscal incentives under the Production Linked Incentives (PLI) scheme may also be announced in the budget announced on 1 February.
Besides, the government may consider funding infrastructure projects approved by the Network Planning Group (NPG), which was formed under the initiative of Prime Minister Ghati Shakti, they said.
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On October 13 last year, Prime Minister Narendra Modi launched Gati Shakti, a national master plan aimed at developing an integrated infrastructure to reduce logistics costs.
NPG has representatives from various connectivity infrastructure ministries/departments, including a network planning department head for integrated planning and proposal integration.
All of these departments first approach the NPG for approval during the planning stage before creating a DPR (Detailed Project Report).
An inverse duty structure refers to taxing inputs at a higher rate than the final product, resulting in accumulating credit and incrementally increasing costs.
The government has already taken a series of measures to promote domestic startups. Under the Startup India Initiative, the Fund of Funds (FFS) Scheme for Startups, Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) have been implemented to support startups at various stages of their business cycle. is provided with capital.
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The government launched the Startup India initiative in January 2016. The aim is to build a strong ecosystem to foster innovation and encourage private investment in the startup ecosystem.
“The Ministry of Industry and Trade is proposing measures to further promote ease of doing business for startups,” said one of the sources.