As the eagerly awaited Budget 2024 is on the horizon, the manufacturing sector is hopeful for measures that will foster inclusive job creation and enhance industrial capacity. Industry experts are urging the Centre, led by Finance Minister Nirmala Sitharaman, to address key areas for balanced regional industrialization and sustained growth.
Gurmit Singh Arora, the National President of the Indian Plumbing Association, emphasized the importance of linking Production Linked Incentive (PLI) eligibility to skilling initiatives and hiring targets. This, he believes, can play a pivotal role in promoting inclusive job creation and bolstering industrial capacity. Arora also advocated for higher incentives for units established in eastern states, contributing to a more balanced regional industrial landscape. He highlighted that despite the PLI scheme driving manufacturing investments, the actual disbursements against targets were modest. Operational challenges for foreign investors, such as land acquisition and utility connections, need addressing to expedite on-the-ground execution.
Amrit Acharya, CEO & Co-founder at Zetwerk, called for a visionary 25-year plan for Indian manufacturing beyond the 'Make in India' campaign. He stressed the need to create a self-reliant ecosystem through substantial investment in research and development, adoption of cutting-edge clean technologies, and robust skilling programs. Acharya emphasized the importance of collaboration between established manufacturers and new-age companies to unlock the sector's true potential and position India as a global manufacturing hub.
Tejpal Singh Shekhawat, founder and CEO of Kalyanam Furniture, highlighted the positive impact of initiatives like PLI, stable policies, and rapid digitization on India's standing in global manufacturing. He suggested scaling existing schemes for electronics and introducing new schemes for areas such as toys and machine tools to enhance cost competitiveness compared to alternative manufacturing destinations.
Raghunandan Saraf, Founder and CEO of Saraf Furniture, emphasized the delicate balance between necessary restrictions and hindrances to investor interest. He stressed the importance of efficient sunset clauses, seamless dispute resolution mechanisms, and eligibility criteria linked to production milestones. Saraf recommended incentivizing specific benchmarks rather than enforcing strict local sourcing levels initially, allowing for a more flexible and dynamic approach to the budget.