In order to resuscitate growth, the Indian machine tool industry seeks a combination of policy initiatives, fiscal incentives and specific schemes while formulating the Union Budget 2022-23.
In terms of specific schemes, there is a need for continued budgetary support for the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase I and advance budgetary allocation for Phase II, said V. Anbu, Director General & CEO, Indian Machine Tool Manufacturers’ Association (IMTMA) and Bangalore International Exhibition Centre (BIEC).
IMTMA has further pitched for reactivation and extension of Credit Linked Capital Subsidy Scheme for another five years with an enhanced limit of Rs. 2 crore.
As part of policy measures, Anbu said land for manufacturing industries may be allotted to industries on a nominal upfront payment through long-term annual lease rent, instead of recovering full price, which will help in enabling cash flow for productive assets.
The industry has also called for permanent replacement of bid security / earnest money deposit with “bid security declaration.”
When it comes to fiscal measures, the IMTMA DG said a higher depreciation of 25% on procurement of new indigenous capital goods besides mandatory registration under TReDS for all companies with a turnover beyond Rs. 250 crores is needed.
For export promotion, he has suggested the government establish Brand India Technology Centres in potential overseas markets for facilitating and promoting exports of capital goods and other engineering equipment.
Emphasising the importance of exhibitions and industrial trade fairs, Anbu said, “The Procurement and Marketing Support (PMS) Scheme” instituted by the Ministry of Micro, Small and Medium Enterprises, Government of India is one of the effective policy endeavours towards quantum marketability of products and services. All major B2B events would be scheduled in a big way during FY 2022-23. Having a quantum level of budgetary allocation for the PMS Scheme would substantially support the endeavour of MSMEs in business expansion and employment generation, leading to higher growth and faster economic recovery.”