Cabinet session has approved the concept for the law to support industrialization. Further drafting of the law and discussions are to be done under Minister of Industry D.Erdenebat.
97 percent of the domestic products have only initial processing with less technological content. This is the clear indicator that industrial sector needs technological advancement and improve the processing capacity. For instance, agricultural processing of raw materials is only at 10-30 percent and is exported with minimal value adding.
This implies the need for support to develop industrialization to add value and increase the investment benefits. State support for the industrilzation is provisioned in the law as following:
-ONE TIME of zero interest rate loan of amount equal to 50 percent of the total investments for technological advancement of the manufactures that export over 60 percent of its products.
-One subsidy of the amount up to 75 percent of the total Research and Development costs for the manufactures that introduce advanced technology with high economic benefits and produce substitute products for imports.
Cabinet session has approved the concept for the law to support industrialization. Further drafting of the law and discussions are to be done under Minister of Industry D.Erdenebat.
97 percent of the domestic products have only initial processing with less technological content. This is the clear indicator that industrial sector needs technological advancement and improve the processing capacity. For instance, agricultural processing of raw materials is only at 10-30 percent and is exported with minimal value adding.
This implies the need for support to develop industrialization to add value and increase the investment benefits. State support for the industrilzation is provisioned in the law as following:
-ONE TIME of zero interest rate loan of amount equal to 50 percent of the total investments for technological advancement of the manufactures that export over 60 percent of its products.
-One subsidy of the amount up to 75 percent of the total Research and Development costs for the manufactures that introduce advanced technology with high economic benefits and produce substitute products for imports.