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

- Creation of an emergency credit line guarantee system for SMEs, businesses and individuals (loans for business purposes). The Guaranteed Credit established to support distressed sectors will be used to guarantee additional credit to 100%, without collateral, at limited interest rates, to entities in 26 sectors defined as distressed, plus the health sector. 

- 17 billion in 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, and the automotive sector.

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

- Export incentive through the release of 400 million euros for Projects to support railways, energy, transmission, roads and transportation, and automotive components.

- An additional outlay of 1.2 billion will be allocated to capital investment and industrial expenditure in materials for national defense, the industrial sector, industrial infrastructure and green energy projects.

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

- Also being launched is a new employment program in order to boost job creation during the recovery phase from Covid 19. The Modi government will provide subsidies for two years for eligible new employees and for employees who had to leave their jobs because of the pandemic.

With 600 enterprises Italian in the territory and more than 23,000 people employed, India now represents a established business partner for Italy. These measures represent therefore, also for Italian companies with a presence in India, a big boost to economic recovery, especially in some areas.

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 more information or have specific questions in reference to the “Stimulus Package” measures, please contact our team.