New Delhi: The commerce and industry ministry has proposed a customised incentive package to attract foreign investments in sectors such as electronics, chemicals and food processing, an official said.
The proposal is part of a 100-day action plan prepared by the Department for Promotion of Industry and Internal Trade (DPIIT), an arm of the ministry, for the new government.
According to the plan, India can attract $100 billion of foreign direct investment annually, provided it matches up to the financial incentives of competing countries like Vietnam.
The Southeast Asian nation provides a host of incentives to foreign investors such a low rate of corporate income tax and tax exemptions up to four years.
"Major investments in the field of electronics, manufacturing, chemicals, food processing and others can come through such incentives. Customised incentive packages will be provided to large investors in priority sectors/areas," the official said. These labour intensive sectors hold huge investment potential and job creation. The ten-point action plan has also proposed a favourable tax regime, formulation of employment generation strategy through legal changes, proper allocation of natural resources, support for small businesses, steps to promote budding entrepreneurs, release of new industrial policy.