The massive thrust on infrastructure and tourism in Budget 2024-25 holds job creation opportunities and has a multiplier effect, says Commerce & Industry Minister Piyush Goyal, adding that the employment linked incentives will further push job growth. In an interaction with businessline the Minister discussed the important interventions that will boost manufacturing and exports. Excerpts:
What is the government hoping to achieve with slashing of import duty on gold and silver to 6 per cent from 15 per cent?
Duty reduction will definitely reduce smuggling. Now that the wedding season is starting, it will make jewellery more affordable. It will help small-scale artisans who add a lot of value to gold through their craftsmanship and will also boost exports, including e-commerce exports. The gold price we have is too far from the international prices. During Covid-19, we needed to put stronger curbs on gold imports but now we are in a strong position and our foreign exchange reserve is strong.
What has been the development so far on e-commerce hubs mentioned in the budget? And what is the progress in the proposed industrial parks?
We have decided to start with about 10-15 e-commerce hubs which will be set up through the PPP mode. They will be scaled up if there is enough interest from trade and exporters. These hubs will have facilities like expedited customs clearances and will be located near major cargo centres. There are about 12 industrial parks being planned. They are all over the country. The details will come in due course. I will go to the Cabinet for these 12 industrial parks.
Q. How is the government planning to further simplify FDI rules?
We have worked out a few things that the Committee of Secretaries is examining. There will be simplification in terms of process, procedures, speed of approval. Some more items could be moved to the automatic approval route instead of (government) approval route. The proposals will have to go through several rounds of approval including Cabinet clearance.
In what ways will the decision on withdrawal of angel tax help start-ups?
Most importantly, the decision addresses the concern on valuations. Startup shares can’t be valued just based on assets. It is very often idea value, potential value. So you have to recognise and respect that the idea gets the value and not just the asset.
Why is the budget speech silent on PLI?
Well the final print will be clear after some time. But the FM has talked about Employment Linked Incentive. There are different ways of incentivising production. There is certainly a big focused on employment now.