As India gears up for the Interim Budget 2024 on February 1st, the manufacturing sector, a key pillar of the economy, has high hopes for Finance Minister Nirmala Sitharaman. Here's a glimpse into their wishlist:
Boosting Exports and Incentives:
Targeted support for export-oriented sectors: Electronics, textiles, pharmaceuticals, and auto components are prime contenders. Measures like extending PLI schemes, streamlining export procedures, and reducing compliance burdens are sought.
Enhanced In-bond manufacturing: Expanding the scope of the scheme and simplifying regulations would attract foreign investment and create jobs.
Reduction in import duties: This would make raw materials and components cheaper, improving the competitiveness of Indian manufacturers.
Skilling and Workforce Development:
Focus on industry-specific skill development programs: Aligning skillsets with industry needs is crucial for bridging the talent gap.
Incentives for apprenticeship programs: Encouraging companies to hire and train apprentices would create a pipeline of skilled workers.
Tax breaks for reskilling and upskilling initiatives: This would incentivize companies to invest in their workforce, enhancing productivity and adaptability.
Infrastructure and Ease of Doing Business:
Increased allocation for infrastructure development: Upgrading roads, ports, and power grids is essential for seamless movement of goods and reduced logistics costs.
Streamlining regulatory processes: Simplifying approvals and clearances would save time and money for businesses.
Reduction in red tape: Faster clearances and approvals would improve ease of doing business and attract investments.
Taxation and Financial Support:
Rationalization of GST rates: A stable and predictable tax regime is crucial for investment decisions.
Extension of tax benefits for new investments: This would encourage capacity expansion and modernization.
Easier access to credit: Providing concessional loans and working capital support would help small and medium businesses.
Focus on Specific Industries:
Electronics manufacturing: Continued support for initiatives like "Make in India" and PLI schemes is crucial to achieve self-reliance in key electronic components.
MSME growth: Specific measures like easier access to finance, credit guarantees, and marketing support are needed to empower MSMEs.
Defense manufacturing: Increased allocation for indigenous defense production would boost the sector and create high-skilled jobs.
Additionally, the sector seeks:
Focus on sustainability and green manufacturing: Encouraging adoption of clean technologies and energy-efficient processes.
Promoting innovation and R&D: Investing in research and development is crucial for developing cutting-edge products and processes.
Public-private partnerships: Collaboration between government and industry can accelerate infrastructure development and technology adoption.
It's important to remember that this is an interim budget, and major policy changes might be reserved for the full budget later in the year. However, the manufacturing sector hopes that the government will acknowledge their concerns and take concrete steps to address them, paving the way for a robust and globally competitive manufacturing ecosystem in India.
