Incentives for furniture manufacturing in the works


New Delhi: A brand new scheme to advertise home furniture manufacturing is in the works as the authorities seeks to cut back India’s dependence on imported furniture. The Department for Promotion of Industry and Internal Trade (DPIIT) is in talks with different ministries and states to rollout a scheme to make India self-reliant in furniture manufacturing via incentives reminiscent of tax breaks. India imported $592 million of furniture in the April-November interval of FY21, greater than half of which got here from China.

“We have begun an exercise and consultations are on with various stakeholders for the furniture sector,” stated an official. However, a manufacturing linked incentive scheme or PLI is dominated out for the sector.

“We are looking at schemes which states can consider and what benefits they can offer such as tax concessions,” the official added.

The furniture sector is one in all the champion sectors for the authorities.

The authorities can also be exploring the concept of furniture clusters, on the line of leather-based clusters, whereby massive scale manufacturing can happen.

The transfer is essential as in addition to China, India additionally imports furniture from Korea and a few ASEAN nations with which it has free commerce agreements that limits the scope for responsibility hikes.

“Given that furniture imports have been substantial in the past, any incentive scheme for manufacturing in India will make supplies from these domestic manufacturers, predominantly MSMEs, more competitive not only for local consumption but also in global markets,” stated Bipin Sapra, associate at advisory agency EY.

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