2014 brings a promise of positivity. We find out the industry’s expectations and plans
By Niranjan Mudholkar
The year 2014 has started with hopes of the market bouncing back. Of course, everyone knows that it will not happen overnight and it will also not happen on its own. In fact, nobody expects a miracle. “We would expect that the first six months of 2014, would still be subdued,” says Venkatesh Valluri, chairman & president, Ingersoll Rand India. Valluri knows that the lack of implementation of major infrastructure projects by the Government, high inflation rates and high interest costs, rupee devaluation, difficulties in borrowing in the mid-tier market segments have all contributed to lowering the capacity utilisation of the Indian manufacturing sector. This has led to lower employment generation. “Also, the industry lost its competitiveness to other countries as we were not able to upgrade technologies in a number of areas. Therefore innovation has also suffered as a consequence,” he says.
Speaking about the challenges, Manish Sharma, MD, Panasonic India says that the continuous rupee depreciation had majorly impacted the Indian manufacturing sector leaving a negative impact on the profit margins and production aspect of manufacturing companies. Of course, he also suggests a few measures that the Government should undertake to change the situation. Key of these is fast tracking approval on pending projects/licenses/permits and aim at investing minimum time possible in the setting up of more production units. “Further, review of policies at the right juncture should also be made a necessary step in order to propel investments and build domestic manufacturing capabilities,” he suggests.