In the backdrop of such negative industry sentiments, the Indian Electrical & Electronics Manufacturers’ Association (IEEMA) stated that the industry is generally disappointed with the Union Budget 2013-14. It states that the budget does not provide the desired impetus for growth, sustainability and viability.
JG Kulkarni, President, IEEMA, says, “We were hoping for some corrective measures to revive the downturn in the domestic electrical equipment industry, which is reeling under the onslaught of the slowdown in the country’s power sector, which has depressed domestic demand. Additionally, the rapidly escalating imports of electrical equipment have further worsened the situation. This has resulted into underutilisation of the manufacturing capacity for electrical equipment.”
“We were expecting some favourable announcements in the budget for countering increasing imports of electrical equipment. It was also expected that service tax exemption would be granted to all projects covered in power generation, transmission and distribution, in line with the exemptions provided to other infrastructure development projects,” Kulkarni adds.
On the contrary, Sudhir Tangri, Country Manager, Electronic Measurement Group, Agilent Technologies India, finds the budget a positive one. Sudhir says, “Given the present economic climate, the Union Budget 2013-14 is great leveller. For a young and growing nation like India, emphasis has been rightly placed on skill-development, job-creation, infrastructure and investments. For the electronics industry too, the budget encourages the set-up of semi-conductor fabrication units by proposing zero customs duty on the imports of plants and machinery for the same. The setting-up of these fabrication units would be a shot in the arm for the electronics industry in India.”