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News & Events - Happening News in the Manufacturing Industry

Find the Happening News in the Manufacturing Industry below – In the Manufacturing Industry and for Capximize

What's happening in the Manufacturing Industry

Budget 2024: India has been actively fostering the expansion of the manufacturing industry as a crucial catalyst for the economy and at par with global peers. In order to encourage domestic manufacturing, section 115 BAB was introduced in the Income-tax Act, 1961 offering a favorable tax regime to greenfield manufacturing ventures. Under section 115 BAB, newly established domestic manufacturing companies are subject to a reduced tax rate of only 15% on their total income. Considering the surcharge and cess, the effective tax rate amounts to 17.16%, which is significantly more attractive compared to the existing corporate tax rates (ranging from 25% to 30%). This benefit was available to domestic manufacturing companies registered on or after 01 October 2019 and which commenced manufacturing or production on or before 31 March 2023. Finance Act 2022 extended this sunset date to 31 March 2024.

Industry associations and chambers expect the government to roll out measures and changes in the policy to improve the country’s competitiveness as a global manufacturing hub and prioritise innovation and research and development.With the Union Budget 2024 just around the corner, industries eye a booster dose for the manufacturing sector and reforms to foster the growth of industries.

Apparel exporters body AEPC on Wednesday sought tax incentives such as uniformity in GST and enhanced interest subsidies to boost domestic manufacturing and India’s outbound shipments. The Apparel Export Promotion Council (AEPC) asked to provide tax concessions to apparel manufacturers adopting Environmental, Social, and Corporate Governance (ESG) and other international quality standards and compliances. The council also sought budgetary support for the branding and marketing of made-in-India products.

In a move aimed at further incentivising fresh investments in the manufacturing sector and promoting ease of compliance, the Indian government is reportedly considering extending the lower tax rate of 15 per cent for companies establishing new manufacturing units.  As per reports, this extension is likely to be announced in the upcoming Interim Budget scheduled for 1 February, continuing the favourable tax rate until 31 March, 2025. The current tax provision, offering a reduced rate of 15 per cent, has been instrumental in attracting major players in the industry. Notably, giants like Apple and Foxconn have already capitalised on this advantageous tax rate by establishing manufacturing bases in India. The government is keen on sustaining this momentum to bolster the manufacturing sector and attract further investments.

Budget expectations: India’s tryst with manufacturing has finally taken a leap of faith. The country’s ambition to become a $10 trillion economy by the turn of this decade is helping reinvent the real potential of its manufacturing sector. The ensuing global trade and supply chain related sensitivities continue to act as enablers for India to shift gears and change its focus from exporting what it can to a global demand based export led diversification approach all with a view to move up the global value chain.
Nitin Gadkari has reiterated that the Indian government aims to make the country’s automobile
sector a ₹25 lakh crore industry from the current ₹12.5 lakh crore one.
Global giants, including Tesla, are said to be betting on India becoming a key manufacturing hub. Such companies have been exploring opportunities to set up factories here, as then they can also take advantage of the country’s growing domestic market.
India’s economic expansion seems to have lost momentum towards the end of the 2023 calendar year with manufacturing output growth slipping to an 18-month low in December dragged by weak demands, an industry survey by S&P Global showed. India’s Purchasing Managers’ Index (PMI) for manufacturing dipped to 54.9 in December from 56 recorded in the previous month. The growth in the manufacturing sector was “curbed by fading demand for certain types of products,” S&P Global noted in it report
This is due to an ‘exceptional’ contribution of mobile phones, said India Cellular and Electronics Association (ICEA) Chairman Pankaj Mohindroo. India’s electronics manufacturing sector is set to grow 15 per cent to be worth USD 115 billion in 2024, with players continuing to focus more on higher levels of value addition in terms of components and development of products. The production of mobile phones, the poster boy of the country’s electronics manufacturing, is expected to surpass USD 50 billion by March 2024 from around USD 42 billion in the previous financial year.
Gujarat ranks third among Indian states in foreign investment in the manufacturing sector, reveals data tabled in the Lok Sabha. Experts said that apart from core manufacturing, sectors such as pharmaceuticals have also seen significant FDI in the past few years. Pathik Patwari, former president of the Gujarat Chamber of Commerce and Industry (GCCI), said that Gujarat has an established industrial ecosystem and infrastructure supporting MSMEs is readily available. “GIFT has also set up a strong international financial services system. The manufacturing and services sectors are doing well. Sectors like pharmaceuticals, API, engineering, auto components and renewable energy parts manufacturing are attracting more FDI,” he said. Goyal’s response mentioned that India had received an FDI of $2,08,812 million from 2019 to 2023.
The manufacturing sector in India has been witnessing proliferating growth in investment, depicting a crucial phase in the country’s economic arena. As per the published dossiers by the Department for Promotion of Industry and Internal Trade (DPIIT), the manufacturing sector engrossed substantial foreign direct investment (FDI), with FDI equity inflows tallying around $17.51 billion in the FY 2020-21 itself. This surge emphasizes intensified investor confidence and exhibits India’s attractiveness as one of the most lucrative manufacturing destinations in the world, as per Colliers India.
The industrial manufacturing sector has experienced a significant boost, attracting global technology giants like Apple eager to expand their supplier networks within India. This momentum is further supported by the implementation of state industrial policies that complement sector-specific incentive schemes. Concurrently, substantial investments in logistics and infrastructure development, including the construction of new roads, highways, and rail tracks, underscore the government’s commitment to bolstering this critical sector.

What's happening in Capximize for the Manufacturing Industry

Capximize Signs an MoU with SIDBI !!!! On 22nd Nov 2023, SIDBI signed an MoU with Capximize India Pvt. Ltd., emphasizing untapped capacities and leverage bank’s role in MSME development, digital finance delivery, and addressing pain points
Capximize SIDBI MoU Signing

Diemex International Die and Mould Exibition

The Capximize Team thank all those who visited us in the Exibition at Booth No. E 16 of Hall  on 27, 28, 29 October 2023


The Capximize Team thank all those who visited us at: Booth No. 16 of Hall – A, Venue: MIDC, Chinchwad, Pimpri-Chinchwad, Maharashtra 411019, on 11, 12, 13 October 2023


Team Capximize thank all those who visited them at Stall No: N21; Venue: Pavilion 2 & 3, Jio World Convention Centre (JWCC), BKC, Mumbai, on 12, 13, 14 September 2023

We Thank all of those who visited the Capximize Team at Stall No: C52; Venue: Bombay Exibition Center, Goregaon East, on 01, 02, 03 September 2023

Thanks all those who visited our stall

Appreciate all those who visited the stall.

Thank you to each one of you making our presence a grand success!

Hope you experienced Capximize’s offerings at the stall A-34.

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