Four options for manufacturing in India
A leg-up for manufacturing - THE HINDU×
The Manufacturing Under Customs Bond scheme can lead to substantial savings for firms, but it has its pain points
In November last year, the government announced the Production Linked Incentives (PLI) scheme for promoting manufacturing in 10 sectors. The initial response indicates that many new large-scale factories would soon be set up in the PLI supported product groups.
The government provides four broad options for manufacturing in India. Selection of appropriate option results in substantial cost savings. The options are: (i) Domestic Tariff Area (DTA), (ii) Special Economic Zone(SEZ), (iii) 100 per cent export oriented unit (EOU), and (iv) Manufacturing Under Customs Bond (MUCB).