Decoding India Inc's Make-In-India Expectations From Budget As the Indian economy has begun to recover from the fiscal repercussions of the COVID-19 pandemic, companies are expecting a boost in Make In India projects

On February 1, the Union budget for 2023–24 will be presented in the Parliament by finance minister Nirmala Sitharaman. As the Indian economy has begun to recover from the fiscal repercussions of the COVID-19 pandemic and the budget will be presented at a time of ongoing geo-political conflict, therefore, a focus on Make-in-India will work as a booster dose. It is the last full budget presented by the current federal government ahead of the 2024 general election and will set the tone for the next 25 years for India at 100.

The government made a strong thrust towards investments in infrastructure through its Gati Shakti programme, which aligns with India's goal of atmanirbhar bharat . It focussed on logistics in order to improve competitiveness in the global markets. Another objective was to generate employment and attract supporting investments by the private sector. This has resulted in growth for the capital goods sector while creating the base for a stronger economy going forward. The push for EVs is generating investments in the sector with a number of new entrants to serve the market. "It will greatly reduce our dependence on oil imports while delivering against our commitments towards reducing global warming and creating a sustainable economy. However, the success of this will depend upon the creation of an enabling environment through the development of a vehicle charging infrastructure as well as a cheap and reliable supply of electricity. Today, a large part of the progress in EVs has been on personal mobility with two and four-wheelers. This has to be commercially extended to the transport sector," said Anil G. Verma, executive director and CEO, Godrej & Boyce.

"India is expecting a GDP growth of 6 per cent plus this year. While certain segments of the economy have done well, the mass consumption segments are yet to pick up. We can truly realize the immense potential of our economy when the majority of our people are earning well and driving consumption across categories, leading to a virtuous cycle of growth," Verma added.

Self-reliance in terms of semiconductor manufacturing can go a long way in establishing India as a global hub for electronics goods, besides creating jobs and attracting investments from top firms around the world. As advanced tech continues to seep into our daily lives, semiconductors continue to become omnipresent. Almost every appliance used in households today is replete with semiconductor chips, which makes it all the more important for the government to lay a greater focus on boosting semiconductor production in India. "We intend to boost local electronics manufacturing. Therefore, we suggest that the PLI scheme should be converted to a design-led manufacturing scheme or DPLI. We request the government to provide incentives if a company designs its electronics and manufactures locally as well. Imposing an import duty of 10 per cent on any imported electronics equipment and assembled PCB will encourage local manufacturing to a great extent," said Vivek Tyagi, chairperson India Electronic and Semiconductor Association.

Sharing a similar view, Rajeev Sharma, chief strategy officer, Mitsubishi Electric India, said, "Manufacturing investments must be encouraged among technology providers to bring self-reliant solutions in the country. Development of new-age manufacturing skills across the top and bottom of the pyramid must be enlightened which can be a game changer for further skill development." Mitsubishi Electric India is looking forward to infrastructural development and technological innovation through its products and solutions.

The year 2022 has been a transformational year for the tech ecosystem. India also emerged as a fast-emerging developing country and a 'bright spot' in the global economy. A tech-driven, forward-looking budget is what Tech Mahindra is expecting. "We hope the upcoming Union budget 2023 will be a beacon of hope for creating national R&D Ideas Incubators, which will nurture critical cross-disciplinary research, new ideas and technologies through the early phase. Encouraging joint collaborations and ownership by industry and academia, along with centers of expertise will also be a welcome experience. The IT sector is poised to play a crucial role in fulfilling the government of India's vision and mission of 'Make in India' for the world, - all it needs is a final push – which the upcoming budget could grant," said Jagdish Mitra, chief strategy officer and head of growth, Tech Mahindra.

The past few years have seen unprecedented volatility and India outperformed some global economies. Just a decade ago, Indian GDP was the eleventh largest in the world. With a seven percent growth forecast for 2022, India's economy overtook the United Kingdom in terms of size, making it the fifth biggest. "Thanks to some very good policy moves by the government.The supply side has been well managed and the demand side needs more attention. My expectation from the budget would be to stimulate demand since we are seeing some slowdown in the second half of FY 23. The government must look at reducing some taxes, both direct and indirect so more money is available with people," said Chandru Kalro, managing director, TTK Prestige Limited, adding that the government must consider tax benefits for the middle class consumer.

The best budget under the current circumstances would be one that prioritizes India's macroeconomic stability. In order to maintain the growth trajectory, focused initiatives to boost consumer sentiment, improvement in ease of doing business (EODB), strengthening of infrastructure and promoting investment in critical areas including healthcare, network modernization, skilling and job opportunities, financial inclusion, is the need of the hour.