India: The Indian government has taken several initiatives in the past year for the economic revival of the Country. Its recognition of the potential in and concern for the MSME sector is greatly appreciated.
Micro Small and Medium Enterprises (MSMEs) are the backbone of the Indian economy and form the foundation of the dream of an Atmanirbhar Bharat. Apart from providing adequate fiscal support to MSMEs, we expect the government to introduce reforms around import substitutes which will boost domestic manufacturing and promote self-reliance. To achieve this, the MSMEs also need to indigenously design and develop products. However, it lacks the adequate technical capability to do so. This reason is the absence of an overarching indigenization policy framework. For the upcoming budget, the government should formulate a policy that focuses on indigenization in high-priority technology areas, thereby allowing MSMEs to design products that are globally competitive.
Incorporating Sustainability practices in the economic revival of the Country is also necessary. While the government has taken steps to promote the adoption of renewable energy in the country, it is also necessary to make green energy an integral part of the policies being announced for MSMEs. This will not only create a sustainable economy and generate new jobs in the segment but will also decrease India’s reliance on energy imports.
To spur the production of engineering products especially positive displacement pumps, the PLI scheme spectrum should be enhanced to include the same which would bring some relief measures for manufacturers like us.
Further, mid-sized companies have always been a strong demand driver for the pump industry, so incentivizing MSMEs through tax benefits on the purchase of indigenous pumps and other components, will further give a boost to the industry.
As export incentives have been lowered, there is a need for trade policy to focus on encouraging MSMEs to move beyond domestic borders. This will help in positioning India as a leader in the global marketplace.
Finally, the packages rolled out under the Atmanirbhar Bharat scheme have facilitated and incentivized job creation, providing much-needed relief to the economy. This must continue in the upcoming budget as well.
Anurag Gupta, with 25 years of experience, is the Joint Managing Director at Roto Pumps Pvt Ltd. He heads the HR, Finance, Manufacturing, New Product Development, and Corporate teams. He is also responsible for business development in international markets such as the UK, Germany, and South Africa.
Founded in 1968 by the visionary late Shri Ram Ratan Gupta, Roto Pumps is a global fluid engineering solutions provider. The equipment manufactured by Roto Pumps has diverse applications across industries such as Energy, Food & Pharmaceuticals, Environment, Agriculture, Defence, Marine, and Shipbuilding. The company has spread its footprints on five continents.
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