Budget 2024: Inclusive Job Creation to Enhance Industrial Capacity – What Manufacturing Sector Expects From FM Sitharaman
Budget 2024: Inclusive Job Creation to Enhance Industrial Capacity - What Manufacturing Sector Expects From F India.com
Budget 2024: One of the industry experts said introducing new schemes for toys, shipping containers, and machine tools with attractive fiscal and non-fiscal incentives would significantly enhance cost competitiveness compared to alternative manufacturing destinations.
Promote Inclusive Job Creation
As Union Finance Minister Nirmala Sitharaman is all set to present Budget 2024 on February 1, 2024, the manufacturing sector expects big from the Centre. Experts in the industry said the Centre should take measures to promote inclusive job creation and enhance industrial capacity. Other experts said providing higher incentives for units established in eastern states can also contribute in a big way to balanced regional industrialization.
Promote Inclusive Job Creation
Speaking to India.com, Gurmit Singh Arora, National President of the Indian Plumbing Association, said tying PLI eligibility to skilling initiatives and hiring targets can promote inclusive job creation and enhance industrial capacity.
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He added that providing higher incentives for units established in eastern states can contribute to balanced regional industrialization. “Despite the scheme driving manufacturing investments, actual disbursements against targets were modest, ranging from 30-40% in the last fiscal year. Addressing operational challenges for foreign investors related to land acquisition, utility connections, and establishing clearer qualification criteria can expedite on-the-ground execution,” he said.
Forge Self-Reliant Ecosystem
Amrit Acharya, CEO & Co-founder at Zetwerk, said that India’s manufacturing moment is now; and we need to seize it with a 25-year vision. “We stand at a pivotal juncture for Indian manufacturing. With unprecedented tailwinds and favorable policy support received from the Government of India, the time is ripe to chart a bold 25-year vision. We must go beyond ‘Make in India’ and forge a self-reliant ecosystem through R&D investment, cutting-edge clean technologies, and robust skilling programs.”
He said he feels that innovation isn’t confined to age and to truly unlock potential, all must bridge the gap between established manufacturers and new-age companies through a level playing field. By collaborating and leveraging their combined experience and agility, India can achieve higher growth in manufacturing and become a factory to the world, thus securing not just economic growth, but a brighter future for all.
Stable Policies, Rapid Digitization
Tejpal Singh Shekhawat, founder and CEO of Kalyanam Furniture, highlighted the impact of the PLI initiative, stable policies, rapid digitization, and the China plus one realignment on placing India prominently on the global manufacturing map.
“To solidify leadership status, he suggests scaling existing schemes for electronics, solar cells, and modules. Additionally, introducing new schemes for toys, shipping containers, and machine tools with attractive fiscal and non-fiscal incentives would significantly enhance cost competitiveness compared to alternative manufacturing destinations,” he said.
Maintaining Restrictions Crucial
Raghunandan Saraf, Founder and CEO of Saraf Furniture, emphasized that while maintaining certain restrictions is essential, excessive limitations can hinder investor interest.
“It is crucial to steer clear of overly rigid measures. The budget should clearly outline efficient sunset clauses, seamless dispute resolution mechanisms, and eligibility criteria tied to production milestones. Rather than enforcing strict local sourcing levels initially, incentives should be linked to specific benchmarks,” he said.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
The issues highlighted in the article are related to job creation, industrial capacity enhancement, and manufacturing growth, which align with SDG 8 and SDG 9.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
- Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
The article mentions the need for promoting inclusive job creation, enhancing industrial capacity, and achieving higher growth in manufacturing, which are in line with these targets.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator 8.2.1: Annual growth rate of real GDP per employed person.
- Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.
The article does not explicitly mention these indicators, but they can be used to measure progress towards the identified targets. The growth rate of real GDP per employed person can indicate economic productivity, while manufacturing value added as a proportion of GDP and per capita can reflect the level of industrialization.
Table: SDGs, Targets, and Indicators
|SDG 8: Decent Work and Economic Growth
|Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
|Indicator 8.2.1: Annual growth rate of real GDP per employed person.
|SDG 9: Industry, Innovation, and Infrastructure
|Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
|Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.
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