Budget 2019: Manufacturing Industry Outlook

Manufacturing Budget 2019

NewsBarons connevts with leading manufacturing companies to share their views on teh announced Budget 2019

India is now on the way to becoming a global manufacturing hub

Rajiv Bhalla, Barco India

We laud the budget presented by Piyush Goel today and believe it is a populist budget overall. Piyush Goel announced 9 top dimensions to this budget and Make in India and Digital India were central to it. Expanding rural industrialisation using modern digital technologies to generate massive employment is the Fourth Dimension of the vision. This will be built upon the Make in India approach to developing grass-roots level clusters, structures and mechanisms encompassing the MSMEs, village industries and start-ups spread in every nook and corner of the country. India is now on the way to becoming a global manufacturing hub in various sectors including automobiles and electronics, defence and medical devices.

At Barco, we believe, building an ecosystem to spur local manufacturing is key for India’s success and a steadily growing economy. Not only does it amplify job opportunities, but also gives a competitive edge to build products and solutions “In India, For India.” This will allow companies like us to build quality products in the country, and focus on helping drive better outcomes for our customers. This will also help local manufacturers negate a price-focused strategy rather than a quality focused strategy.

Thrust on manufacturing sector will boost growth and employment creation

Munira Loliwala, TeamLease Services Limited.

The thrust on the manufacturing sector will go a long way in boosting the growth as well as the employment creation by the sector. Further, incorporation of renewable energy as a critical element of the growth agenda is a great move. It will encourage corporates to stay invested in the industry. Further, the focus on technology driven development is also good. However, one area that needs intervention is up-skilling of the talent. Technologies are fast changing and hence ear marking more funds as well as increasing the incentives given to employees who take up up-skilling programmes will encourage talent to continue to learn and thereby stay relevant.

Increase in disposable income will spur demand

Vijay Mansukhani, Mirc Electronics Ltd (Onida)

Overall budget is very positive for middle class, as the Government has put in more disposable income in the hands of middle class of the country. This is much needed for a long time. On the other hand there is good balancing act done to agriculture sector, which would bring in much need relief to farmers of the country.

Increase in disposable income in the hands of both middle class and rural India is definitely going to spur demand for consumer durables goods like televisions, air conditioners and washing machines. This move is definitely positive for us.

Government should have worked on selective Free Trade Agreements with countries like Korea, Thailand, Vietnam and Malaysia for agricultural products rather than encouraging duty free import of consumer durables from these countries. The recent move of the Government of India to reduce customs duty on goods imported from Korea from 6.9% to 6.3% and from Vietnam, Thailand, Malaysia and Sri Lanka to zero is detrimental to Make in India initiative of the company. On one side the Government of India have been promoting make in India and on the other side entering FTA’s with these countries, which will not encourage the growth of manufacturing in India.

Government has considered all the sections and this will create comprehensive benefit to economy

Rajeev Kapur, Steelbird Helmets

The budget has been indeed surprising as it’s different from the predecessors. A lot of rebates and good news on tax front for middle class. Income tax rebate for individuals earning till 5 lakhs is going to prove beneficial to the middle class and something that they have surely wished for. It is infact beyond their expectation. Apart from this lot of other reforms have been proposed to support the Taxpayer like increase in standard deduction for salaried individuals, raising the TDS limits, Exemption from tax on Second Self occupied house etc

Then the government has also planned to give 12 crore farmers 6000 rupees. This is another silver lining in the budget and a big move which will uplift their current condition.

Even on the security front they have spent 3,00,000 crore which is again a gigantic and a much needed move.

So be it escalating living standards by their cleanliness drive, providing benefit to the common man, the farmers or strengthening security, all in all the government is surely far sighted. It is working at the root level for that.

Budget supports rapid development of the economy

Rajeev Sharma, Mitsubishi Electric India Pvt. Ltd.

The interim budget for 2019-20 seems to be a balanced budget with support to sectors like agriculture and infrastructure for a holistic development of the Nation. Railways, roadways, airways along rail, road linkages, connectivity infrastructure, and 99 city Smart Cities Plan excites us. Also, the Rs.50 lakh crore investment plan for improvement and proper completion of the ongoing and upcoming infrastructure projects is a welcome step, we are hopeful that the budget supports rapid development of the economy.

Sectors related to real-estate will also gain an opportunity to boost their business

Ashok Kumar Gupta, Shalimar Paints Limited.

We welcome the Interim Budget 2019 by the government. The government has announced various reforms to revive the real-estate sector for both home buyers and the developers. Reforms like reinvestment of capital gain in 2 houses rather than one will have much more stronger impact on home buyers to buy more assets. Thus, sectors related to real-estate will also gain an opportunity to boost their business and paint industry will be one of the biggest sector among all. People will look forward to design the interiors and paint their houses.