The Indian government is reportedly planning to extend the lower tax rate of 15% for companies establishing new manufacturing units until March 31, 2025. The move is aimed at boosting the manufacturing sector by attracting fresh investments and ensuring ease of compliance. The current tax incentive offers a 15% rate for new manufacturing units, with the condition that operations must commence before March 31, 2023. The potential extension is expected to encourage global firms to view India as an alternative to China and promote increased investment in the manufacturing sector. The announcement may be made in the upcoming Interim Budget on February 1.