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 commercial purposes). The Guaranteed Loan established to support sectors in difficulty will be used to provide additional credit under the 100% program, without collateral, at capped interest rates, in favor of entities in 26 defined sectors in difficulty, plus the healthcare sector. 

– 17 billion in incentives are offered to 10 sectors to promote domestic production, exports and job creation. Among the included sectors are: “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 intended for 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 “Covid Suraksha” mission” For Indian Covid vaccine research and development.

– It is also being launched New employment program in order to incentivize job creation during the post-Covid 19 recovery phase. 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 e 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 further information or have specific questions regarding the “Stimulus Package” measures, you can contact our team.