Breaking news: "Economic Stimulus Package 3.0" for the recovery of the Indian economy in the post Covid-19

– Creation of a guarantee system for emergency credit lines for SMEs, businesses and individuals (loans for commercial purposes). The Guaranteed Credit established to support sectors in difficulty will serve to guarantee additional credit to the 100%, without collateral guarantees, at limited interest rates, to entities in 26 sectors defined as being in difficulty, plus the healthcare sector. 

– 17 billion euro of incentives are offered to 10 sectors to promote domestic production, exports and job creation. Sectors included: mobile manufacturing, specific electronic components, active pharmaceutical ingredients (APIs), medical device manufacturing, automotive sector.

– Financial support from 8 billion euros to promote agriculture and rural employment.

– Export incentive through the release of 400 million euros for projects supporting rail, power, transmission, road and transportation, and auto parts.

– A further outlay of 1.2 billion euros will be destined to capital investment and industrial expenditure in material for national defense, for the industrial sector, for industrial infrastructure and for green energy projects.

– An R&D contribution of the value of 110 million euros for the “Covid Suraksha” mission for the research and development of the Indian Covid vaccine.

– A. is also being launched new employment program in order to incentivize job creation during the recovery phase from Covid 19. The Modi Government will provide two-year benefits for eligible new employees and for employees who have had to leave their jobs due to the pandemic.

With 600 businesses Italian on the territory and over 23,000 people employed, India now represents a consolidated commercial partner for Italy. These measures they represent therefore, also for Italian companies present in India, a big boost to the economic recoveryespecially in some sectors.

The measures announced by the Indian government, however, are quite broad and may not be applicable to all businesses, both private and public. If you need further information or have specific questions regarding the “Stimulus Package” measures, you can contact our team.