Finance Minister announced a significant cut in corporate tax – a demand the industry has been putting forward for the past few years. Giving much relief to the corporate companies, the government has slashed the tax rate on all domestic firms to 22%. Further, new manufacturing companies that will come up from October 1 onwards will have to pay tax at 15% rate.  With the reduction of tax rate for existing firms and a significantly lower rate for new manufacturing companies, investment is expected to rise.

The government is looking to reduce imports of more than 350 "non-essential" items such as toys, textiles, footwear and electronic goods to give the Make in India initiative a push. Several ministries, including textiles, electronics and IT and commerce and industry, have been asked to take action on the list of identified products. It is also considering the suggestion to do away with global tender for govt.  procurement in industries where domestic demand was enough. Read More

The Centre will soon constitute a working group on the proposed new industrial policy, which is aimed at promoting emerging sectors, reducing regulatory hurdles and making India a manufacturing hub. Earlier, the Department for Promotion of Industry and Internal Trade (DPIIT) had prepared the policy and sent it for the Union Cabinet approval, but certain new suggestions have been made with regard to the policy.