The Indian government announced the new budget for the financial year 2023-24 earlier this month. This budget laid specific emphasis on churning the economy within the country with a growth forecast of 6-6.8%.
Focusing on the ‘Make in India’, making the country self-reliant. The Finance Minister- Nirmala Sitaraman stated that the country is heading towards a brighter future with a massive capital outlay in infrastructure, green growth and tech-enabled projects.
A special impetus was given to the manufacturing industry- Auto, IT, Pharma etc. Find below the key highlights of the budget specific to the manufacturing sector:
- Auto, IT and Pharma sectors would benefit further from PLI schemes The government is anticipated to extend the existing PLI (production-linked incentives) schemes and combine them with low corporate tax rates.
- To enable the country to expand its network of roads, ports, and airports and make it an appealing destination for investors, the Indian government increased its capital investment by 33% to 10 trillion rupees ($122 Billion).
- Several programmes, including the PLI scheme for Advanced Chemistry Cell (ACC), the PLI scheme for the automotive industry (Rs 25,938 crore), and the faster adoption of manufacturing of electric vehicles, were already in pipeline (FAME).
- The FM mentioned that this was done to enable the automotive sector to leap from traditional fossil fuel-based automobile transportation systems to environmentally cleaner, sustainable, advanced and more efficient alternate fuel technology.
- The exemption of customs duty on capital goods imported for manufacturing lithium-ion batteries will boost EV domestic production. This will significantly help India’s EV industry as well as the automobile industry as a whole.
- The National Green Hydrogen Mission has been granted a huge budget of Rs 19,700 crores. This will reduce India’s dependency on fossil fuel imports and encourage green mobility.
- Toy manufacturers would receive a PLI programme of Rs 3,500 crores if their products meet Bureau of Indian Standards (BIS) requirements. Toys and toy parts will now be subject to 70% more in customs fees.
- The FM suggested extending the 15% corporate tax rate to newly incorporated industrial cooperative societies through March 31, 2024.
- Considerable incentives have been allocated for co-operatives in sugar and ethanol processing, food items etc.
- Carry forward and set off losses for start-ups that were earlier available for 7 years have now been increased to 10 years. Additionally, the time frame has been extended by an additional year for the incorporation of new start-ups that qualify for an exemption.
The Budget’s emphasis on manufacturing can help India become one of the world’s economic engines. With so many countries struggling with growing pains, India stands to gain from a weak global economy.
It is providing financial resources for educational resources, we will make more young people available for employment. We expect that manufacturing will be the biggest beneficiary of this budget. The government’s initiatives are likely to benefit companies in sectors such as automobile, construction equipment, aerospace and defence. (Source for all data: ET)
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Temporary staffing is a way to hire employees for short-term assignments. These assignments may be based on specific projects or tasks, to meet the seasonal demand or volume hiring or they may be hired on an as-needed basis.
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Advantages of hiring temporary workers
Agencies can help companies hire temporary employees through their recruitment process. They can also provide support to employers who are hiring temporary employees by helping them find qualified candidates and schedule interviews with potential candidates.
How do temp agencies work?
Temp Agencies work as a catalyst between the employee and the principal employer. They ensure that the onboarding and deployment are seamless for both parties. The candidate works for the staffing partner, which also serves as his or her employer.
Staffing consultancies help companies hire short-term employees. Their tasks include:
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- Background checks: Background checks on employees include inquiries into a candidate’s educational credentials, credit history, medical history, and criminal past.
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- Understanding your requirements. To understand what would be expected of the worker, the partner consultancy will ask you several questions. This aids in their search for a qualified applicant.
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