/ MOOWR SCHEME – How an international trading company can set up a manufacturing unit in India?

What is MOOWR?

MOOWR is a set of regulations introduced by the Indian government to encourage foreign investment in the country. The regulations pertaining to the establishment of manufacturing units and other operations in India. This scheme delinked the quantum/obligation of exports and the benefit is also extended to the importers who import the goods for domestic clearance/sell. The aim of MOOWR is to simplify and streamline the process of setting up operations, while also providing various benefits to businesses that choose to operate in India.

Why is MOOWR important for European businesses?

For European businesses looking to expand into India, MOOWR can offer several benefits. Firstly, it can simplify the process of setting up operations in India. The regulations provide a clear framework for establishing operations, which can help foreign/Indian subsidiaries to navigate the complex regulatory landscape in India. This can save time, money, and resources that would otherwise be spent on navigating the bureaucracy.

Secondly, MOOWR offers benefits to businesses that choose to operate under these regulations. These can include tax breaks, duty exemptions, and other financial incentives that can help businesses save money and improve their bottom line. Additionally, businesses operating under MOOWR can enjoy streamlined customs procedures.

What are the benefits of operating under MOOWR?

There are several benefits that European businesses can expect if they choose to operate under MOOWR. These include:

1. Reduced costs: Businesses operating under MOOWR can benefit from various tax breaks, duty exemptions, and other financial incentives. This can help reduce costs and improve profitability.
2. Streamlined customs procedures: MOOWR provides streamlined customs procedures, which can help reduce delays and save time.
3. Improved market access: Operating under MOOWR can help businesses tap into the large Indian market, which has a rapidly growing middle class and a strong appetite for foreign goods and services.

Ease of Manufacturing in India (Make/Made in India)

1. Common form: Common application cum approval form for a license for the private bonded facility (Section 58, 58A of Customs Act 1962) and permission for manufacturing and other operations
2. Unlimited period of warehousing: Capital and non-capital goods (raw materials, components, etc.) can remain warehoused until clearance or consumption
3. No geographical restriction: New manufacturing facility can be set up or an existing facility can be converted into a bonded manufacturing facility irrespective of its location in India
4. Easy compliance: Maintain all records of manufacturing and other operations digitally in a single format

In conclusion, MOOWR is an important set of regulations for companies looking to expand their operations into India. By providing a clear framework for establishing operations in India and offering various incentives and benefits, MOOWR can help businesses navigate the complex regulatory landscape in India, reduce costs, and improve profitability.