Quote on Budget - Manufacturing by Mr. Munish Aggarwal, Managing Director and Sector lead Industrials. Equirus Capital
Below the Quote on Manufacturing by Mr. Munish Aggarwal, Managing Director and Sector lead Industrials. Equirus Capital
Union Budget rightfully focuses on broad swathes of manufacturing including new-age sectors like semiconductor and electronic component manufacturing, legacy sectors as textiles and chemicals as well as MSME sectors.
The various proposals laid out by the budget help shine a light on how the government intends to enable as well as support growth in manufacturing while also enabling material security, capacity and capability building through financial support and focus on securing rare earths, setting up tool rooms, construction and infrastructure equipment including high-end systems like tunnel boring machines, container manufacturing, mega textile parks, dedicated “plug-and-play” industrial parks.
Also, acknowledging its importance, the budget stresses on skill development programs, innovation funding, and export support despite the disruptive external environment to strengthen global competitiveness and integrate Indian manufacturing more deeply into global value chains.
We believe that the budget reaffirms government’s focus on manufacturing and their willingness to direct resources and policy to support growth in the sector. Unless the external environment deteriorates further, we expect Indian manufacturing sector to grow at an annualized growth rate of over 10% with the budget negating some of the challenges that had emerged over the past few months.
Above views are of the author and not of the website kindly read disclaimer
