CII President Sanjeev Bajaj said on Tuesday that the Production Linked Incentives (PLI) project would give the industry a booster shot, adding that incentive-linked programs are also needed in employment-intensive sectors like tourism and footwear. “Power utilization has reached 80% in many sectors so there is room for expansion. “Once there is some stability and the risk of war is reduced, we should see the capex grow,” he said.
Bajaj has called for a GST-like system that would ease the problems of entrepreneurs related to land, energy and labor and improve the ease of doing business. In addition, he highlighted the need for a technology mission that would help small businesses gain access to technology.
“MSMEs need to have a competent framework where government and academia can work together to help them access technology,” he said. Moreover, it was important to ensure smooth flow of business loans and capital. In this context, Bajaj has emphasized the need for more competition in lending and the need for further privatization of lenders by the government. He raised the issue of allowing large non-banking financial institutions (NBFCs) to provide full banking services.
CII expects the share of production in the country’s GDP to increase from the current 16-17% to 25% by 2031.
Bajaj said continuity in tax policy in the medium term is important so that the corporate sector can plan its investments. The government, he observes, has taken bold steps to reduce corporate taxes to encourage investment. “As a country, we have the opportunity to be a manufacturing hub and to use this opportunity we need to build an ecosystem,” he said, adding that the record exports indicate that India has the potential to sell to the world market.
It was also necessary, the CII chief said, to ensure efficiency and re-efficiency of the workforce. While some jobs may be taken away in automation production, job opportunities will also be created, such as in the service sector; There is a way to adapt to the industrial situation. CII has launched a three-year skills program for 300,000 MSMEs. The CII chief believes the government has room for some reduction in fuel tariffs as it raises tariffs as crude oil prices fall. This will bring some relief to the common people.