What the Government does to leverage the unique position that India is in today will define if we are going to end up being a super economy or a country that could have been one. The intrinsic strengths of the country on their own cannot be the drivers of growth, the government needs to really create hard and soft business friendly environment to give credence to its intent of driving growth. The need of the moment to showcase the fact that this government means what it says.
In the telecom industry context the scope to leverage the industry to aid the overall growth is tremendous. We are in a new era – hence business investments in current times should not be viewed plainly in terms of Plant & Machinery but investments in terms of technology and infrastructure should be given more weightage when formulating incentives. Incentives on investments are required to accelerate the economic growth and improve the business sentiments and therefore have a positive spinoff all around. Therefore the government should re-define the policies related to investments and provide for rebates/ incentives accordingly.
The Government has the opportunity to support and encourage with various benefits/ incentives/schemes for those companies who have global aspirations and are taking Indian brands to a global market place. These companies may or may not be manufacturing the products in India – but the resultant impact on the perception of what India can do, could be significant.
In order to boost the sector the government should refund 100% of import duties for all exports made by Indian companies.
We believe reduction of import duties with an option to allow businesses to Make in India will be a welcome move. This will give a huge boost to the Make in India initiative and also enable Indian businesses to exponentially grow.
Creating a suitable ecosystem for manufacturing in India and more importantly creating a favorable perception of India being business friendly is extremely necessary at this stage. I believe the government should take this aspect on priority. Reducing Corporate Income Tax to 20% to enhance growth is another aspect the government should be consider – as a rider they can create a mechanism that this is linked to the investments being made.