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 business purposes). The Guaranteed Credit set up to support sectors in difficulty will serve to guarantee an additional credit to 100%, without collateral, at limited interest rates, in favor of entities in 26 sectors defined as distressed, plus the health sector. 

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

– Financial support of 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.

– An additional 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.

– It is also being launched a new employment programme in order to boost job creation during the recovery 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.

However, the measures announced by the Indian government are quite broad and may not apply to all companies, both private and public. If you need more information or if you have specific questions regarding the measures of the "Stimulus Package", you can contact our team.