T&M Industry will be very much impacted by brand new dispensation at the center
and the new model of Government and Governance balance.There is now one month
time since the new Government has taken over and both lot of hyped expectations and
innovative ideas/action plans are floating around! However going by the past track record
of people at the helm of affairs,and the Conditions of Economy this Government was
handed, we can expect some pragmatic but hard steps initially.
The three Fs (Food,Fertiliser,Fuel ) subsidy and the previous Government Populist
schemes of all kind ,and Corporate Exemptions will be on Radar.These populist
programs have contributed to bleeding the country white and the monster of inflation
has caused big havoc.So getting the requisite money for large scale investment both
external and internal is the challenge.Tax policy ,particularly short term measures and
long term vision on Taxes will be important trigger before some Tax/GDP ratio can
be projected for the future.Which will be liberalised from tax point of view and where
saving/investment can be incentivised?
From the T&M and Electronics Industry perspective Local manufacturing through Clusters
and tier2 towns will play a major role.Since the requirement of Components/subassys is
huge (next to Gold& Oil imports) attracting FDI in large measure will be most necessary.
Towards this objective, appropriate business houses,here and abroad need to be given due
sops mainly on land and duties etc.
As we prepare to wait for the first budget some ideas and speculations are in order!
