Union Budget 2020-21 introduces new wave of reforms to boost manufacturing

March 6, 2020 6:17 pm

Industry players discuss how the Union Budget for 2020-21 that was presented by Minister of Finance and Corporate Affairs Nirmala Sitharaman will impact the manufacturing sector.

The government is clearly pushing manufacturing in the country — an investment clearance cell being set up, scheme to encourage manufacturing of electronics and semiconductor industry products, `27,000 crore for industry and commerce is a good measure for the economic boost.
Harsh Jain,Co-founder and COO, Groww

The vision for the semiconductor and electronics industry in the budget speech is encouraging. We feel this interim budget by Finance Minister is progressive and inclusive. It focuses on leveraging new technologies to build countrywide digital infrastructure, skill-building and drives growth by providing cost benefits for electronics manufacturing in India. The scheme to boost the intelligent electronics and semiconductor ecosystem by the manufacturing of mobile phones, semiconductor packaging and electronic equipment, and assures more investment. We foresee that the sustained incentives by the government to promote local manufacturing will fulfil local demand and also enable India to become an export hub for electronics.
Jitendra Chaddah,Chairman, IESA

The Finance Minister’s announcements under Union Budget 2020 introducing new schemes will help the small players in the export sector in a big way. The new Nirvik scheme introduces high insurance cover for exporters at a reduced premium. Simplified processes for faster claim settlements will be beneficial for both the exporters and the general insurers. It will lead to providing high insurance cover, reduction in premium for small exporters and simplified procedures for claim settlements; this will encourage export finance and boost exports. Coming to the MSMEs, the announcement for the subordinate debt for entrepreneurs is a big positive and will help the MSME sector benefit in a massive way. These seem to be sound measures that can stimulate profitable activities for players in the trade and finance sector.
Tim Nicolle, Founder, PrimaDollar

We laud the budget presented by Sitharaman. She stated that the government could announce a `36,000-crore fund to provide production linked incentives (PLI) to smartphone makers. Building a complete ecosystem to spur local manufacturing is the key for its success. This scheme will support the manufacturers to offer quality products at competitive prices, generating ample employment opportunities and boosting the domestic economy. Our request to the government to give preferential treatment to Indian companies having 100 percent local equity over their Chinese counterparts was heeded to. Faster and hassle-free implementation of incentive schemes is the call of the hour.
Sunil Patwari, CEO,Rashmi Rare Earth Limited

With the announcement of the budget, it is apparently clear that our government is optimistic on boosting the growth of the manufacturing sector. The step to reduce corporate tax rate to 15 percent for new companies in the manufacturing and power sectors will certainly encourage entrepreneurs, which will eventually boost the “Make in India” initiative. The government has also proposed a new plan for “Assemble in India” in order to promote India as a hub for assembling products for major global manufacturers. The budget also places a special focus on digital connectivity and use of latest technologies, including Artificial Intelligence (AI) and Machine Learning (ML), amongst others. This will not only modernise data collection but will enhance integrated information portal and timely dissemination of information at the right moment. We expect MSMEs to benefit with this year’s financial budget, as they are an integral part in today’s industrial world and so is the budget. Manufacturing in India will not only gain global stability but also provide employment and increased productivity.
Jhankar Dutta,Managing Director,B&R Industrial Automation

The emphasis on MSMEs, entrepreneurship, and infrastructure is well placed and does infuse optimism. Going forward, with a determined focus towards implementation, we are hopeful that the economy would soon get back on the recovery course. The budget proposals to usher in a new economy through digital technology and disruptive solutions emerging from the use of artificial intelligence, machine learning, 3D printing, quantum computing and Internet of Things highlights the clear vision of the government to make India a global technological leader.
Lokesh Kaushal, Regional Segment Leader – Packaging Machinery, Asia Pacific, Rockwell Automation