Indian Budget 2013
India's Budget and the Process Industry: What Top Honchos Expect for 2013
Arvind K Goel Managing Director, Auma India & Chairman, CII Valves & Actuators Division
“At present, valves and actuator manufacturers are suffering from lack of orders on account of negative growth in the Indian capital goods sector. Power sector is one of the important drivers for this industry and delays in execution of power projects, both in state and private sector, have severely impacted valves and actuator manufacturers. Our industry would like to see clarity in policies to remove various obstacles in completion of power projects.
The industry also expects appropriate allocations in water and waste water treatment sector which are mostly in the state sector. Any steps which would encourage the growth of the industry in general, would be welcomed as it would spur the demand for the products of our industry. Export of valves has been picking up due to the inherent strength of the Indian industry to supply engineered valves to the global markets and most of the global players have set manufacturing facilities in India.
Our industry would also be looking for support in promotion of exports of valves and actuators, where the competition is with the countries like China, Korea, Italy etc. with low interest rates and virtually no infrastructure bottlenecks, faced by the producers in India.”
Jasbir Singh Vice President, Essar Projects (India) Ltd
“Budget increases the expectation of overall business sector, agriculture, manufacturing and service sectors. Macro economy call for more foreign investment, which is seriously, required in infrastructure and energy sectors. One window LLC clearance and transparent FDI laws should be considered. Tax incentives that support revival of the manufacturing and capital goods sectors should be introduced.
The Government may also consider reintroducing investment allowance to create the attraction in capital goods sector. Litigation in India is timeconsuming and increases the hidden cost for global companies
operating here. The Government should consider ways to strengthen the dispute resolution process. The objective should be to resolve disputes with a fair and open mind. New areas that should be looked at are: Government should encourage foreign investments with local companies in Shale gas exploration, the new energy source for the coming years; CBM exploration should be encouraged; there should be tax exemption for coal to methane gas plant; new SEZ areas to be indentified in all states.”