Rationalise power tariffs to give a boost to manufacturing sector

The government has been aiming on spending on infrastructure and power, over the last couple of years. The manufacturing sector benefits from building better highways and roads for better transportation of goods. Also, uninterrupted power supply is required for producing goods under cost effective means. This needs to continue at a steady pace. The importance has also shifted to building human resources by imparting skills amongst the workforce, and setting up more engineering institutions across the country. The engineering sector has seen a remarkable growth over the past few years due to increased investments in infrastructure. 

We believe that the budget this year should continue its focus on the above points. Introduction of GST is also another positive step towards better economy, and one, which will benefit the manufacturing sector. Focus should be to get it implemented in the smoothest manner possible.

Another important budget focus could be the rationalisation of power tariffs, which can work as a big boost to the manufacturing sector. Rationalised power can significantly affect the product costing, and ease out the manufacturing hurdles.

The budget this year could also introduce some policies that provide incentive to innovation, quality and R&D, which can greatly enhance value addition in manufacturing in India. Make in India should be perceived not just as an option for competitive labour cost, but also for better quality and innovative design. 

Apart from this, a significant amount of budget should be attributed to Skill India program. The idea behind skill program is to improve productivity, efficiency, and skills amongst youth to get blue collar jobs as there should be a balanced growth in all sectors and every job should be given equal importance. Skill development has to reach rural and remote areas so that better results are achieved. 

Indian industry is reeling under the imports from China. Though the government is taking action by treating China as a non-market economy, there is a need of a better protection to the Indian industry. The Indian manufacturing industry is hoping that the budget proposals would definitely accelerate the growth for the economy as a whole and also, take the initiative of Make in India to the next level by timely implementation on tax policy and administrative reforms.

Rajesh Nigam is the founder and director of Karam Industries