JOIN USWorried over the sluggish growth in manufacturing sector, the Centre is considering tax incentives and subsidies soon.
Prime Minister Manmohan Singh, who is the Chairman of Committee on Manufacturing, is likely to focus on giving sops to telecom equipment manufacturing and shipbuilding sectors. The panel will meeting next month to review the sector’s growth.
The government has already started discussion with stakeholders of telecom and shipbuilding sectors about the incentives they expected from the Centre. As these two sectors can also create several jobs, the government is keen to give attention to this, said an official from the Ministry of Finance.
The government is worried over the decline in growth in manufacturing sector resulting in widening of the current account deficit (CAD). India's CAD widened to 4.8 per cent of GDP in 2012-13.
The government, which has set the target to limit CAD below 3 per cent of the GDP by the end of the 12th Five Year Plan also announced several measures to arrest growing imports and boost domestic production in different sectors.