Bangalore

In order to resuscitate growth, the Indian machine tool industry has urged the government to take a combination of policy initiatives, fiscal incentives and specific schemes while formulating the Union Budget 2022-23.

"There is a need for continued budgetary support for Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase I and advance budgetary allocation for Phase II

There is a need to reactivate and extend Credit Linked Capital Subsidy Scheme for another 5 years with an enhanced limit of Rs 2 crores. As part of policy measures, land for manufacturing industries may be allotted to industries on a nominal upfront payment through long-term annual lease rent, instead of recovering full price, which will help in enabling cash flow for productive assets. The machine tools industry also calls for permanent replacement of bid security / earnest money deposit with “bid security declaration," said the Indian Machine Tool Manufacturers’ Association (IMTMA) in a press release. 

When it comes to fiscal measures, Budget 2022 should provide a higher depreciation of 25% on procurement of new indigenous capital goods besides mandatory registration under TReDS for all companies with a turnover beyond Rs 250 crores. For export promotion, establishment of Brand India Technology Centres by the Government of India in potential overseas markets is required for facilitating and promoting exports of capital goods and other engineering equipment.

Emphasising the importance of exhibitions and industrial trade fairs, V Anbu, Director General & CEO, Indian Machine Tool Manufacturers’ Association (IMTMA) and Bangalore International Exhibition Centre (BIEC), said, “The Procurement and Marketing Support (PMS) Scheme instituted by the Ministry of Micro, Small and Medium Enterprises, Government of India is one of the effective policy endeavours towards quantum marketability of products and services. All major B2B events would be scheduled in a big way during FY 2022-23. Having a quantum level of budgetary allocation for PMS Scheme would substantially support the endeavour of MSMEs in business expansion and employment generation, leading to higher growth and faster economic recovery.”