<p>India is working on offering production linked incentives for up to five sectors to boost domestic manufacturing, a top finance ministry official said on Thursday, bolstering efforts to attract new investments in the coronavirus-stricken economy.</p>.<p>Asia's third-largest economy is expected to contract by as much as 10% in the current fiscal year beginning April, some private economists' estimate, after the outbreak crippled business and consumer activity since late March, compared to government's earlier target of about 6% growth.</p>.<p>The government has announced a raft of measures including direct food subsidy to nearly 810 million people and credit guarantees of 3 trillion rupees ($40.17 billion) on loans to small businesses.</p>.<p>Tarun Bajaj, economic affairs secretary at the Ministry of Finance, told a virtual conference that incentives would be offered to sectors to push manufacturing and help struggling industries.</p>.<p>Bajaj didn't specify the sectors that may be eligible for incentives.</p>.<p>The government earlier announced production linked incentives for large scale electronic goods makers for five years, to attract investments in mobile phone manufacturing and electronic component units.</p>.<p>Incentives have also been announced for pharmaceutical companies for production of bulk drugs and on medical devices.</p>.<p>Speaking at a virtual conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday, finance ministry official said the government was expecting a "V" shape economic recovery beginning next fiscal year.</p>.<p>Reuters earlier reported that India is drawing up an incentive scheme for the autos sector aimed at doubling exports of vehicles and components in the next five years.</p>.<p>Industry and government sources said sectors such as textile and food processing manufacturers could be offered production linked incentives.</p>.<p>The latest data on 14-15 economic indicators including railway freight and tax collections showed a pick up in economic activities, Bajaj said, adding the government was open to borrow more from the market to meet spending targets for infrastructure projects. ($1 = 74.6750 Indian rupees)</p>
<p>India is working on offering production linked incentives for up to five sectors to boost domestic manufacturing, a top finance ministry official said on Thursday, bolstering efforts to attract new investments in the coronavirus-stricken economy.</p>.<p>Asia's third-largest economy is expected to contract by as much as 10% in the current fiscal year beginning April, some private economists' estimate, after the outbreak crippled business and consumer activity since late March, compared to government's earlier target of about 6% growth.</p>.<p>The government has announced a raft of measures including direct food subsidy to nearly 810 million people and credit guarantees of 3 trillion rupees ($40.17 billion) on loans to small businesses.</p>.<p>Tarun Bajaj, economic affairs secretary at the Ministry of Finance, told a virtual conference that incentives would be offered to sectors to push manufacturing and help struggling industries.</p>.<p>Bajaj didn't specify the sectors that may be eligible for incentives.</p>.<p>The government earlier announced production linked incentives for large scale electronic goods makers for five years, to attract investments in mobile phone manufacturing and electronic component units.</p>.<p>Incentives have also been announced for pharmaceutical companies for production of bulk drugs and on medical devices.</p>.<p>Speaking at a virtual conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) on Thursday, finance ministry official said the government was expecting a "V" shape economic recovery beginning next fiscal year.</p>.<p>Reuters earlier reported that India is drawing up an incentive scheme for the autos sector aimed at doubling exports of vehicles and components in the next five years.</p>.<p>Industry and government sources said sectors such as textile and food processing manufacturers could be offered production linked incentives.</p>.<p>The latest data on 14-15 economic indicators including railway freight and tax collections showed a pick up in economic activities, Bajaj said, adding the government was open to borrow more from the market to meet spending targets for infrastructure projects. ($1 = 74.6750 Indian rupees)</p>