A budget to ease profitability for industrial India

By OEM Update Editorial March 1, 2022 7:28 pm

Vibrant manufacturing is imperative for India’s growth and the budget has done well to recognize that.

The Budget shows promise, particularly due to its focus on boosting manufacturing, construction, infrastructure and other core activities, says Rupinder Paintal, Director – Market Development, ExxonMobil Lubricants Pvt. Ltd. The Budget has also rightly emphasised the critical balance between climate action and economic growth. It has also eased funding for SMEs and MSMEs by extending the Emergency Credit Line Scheme (ECLGS) till 2023. The push for PM Gati Shakti is significant for the logistics sector and will have a robust multiplier effect on dependent industries. The government’s endeavour to encourage integrated logistics and multimodal connectivity, with a transformative approach for economic growth and emission reduction – driven by roads, railways, airports, ports, mass transport, waterways and logistics infrastructure – will accelerate the progress for the highly fragmented logistics industry. The Budget schemes to encourage domestic manufacturing of solar power equipment, battery swapping, deployment of biomass pellets in thermal stations, and impetus for green bonds will open new doors for India’s manufacturing industries. 

Impact of Budget on machine tool segment technologies 

The Budget reaffirms India’s commitment to macroeconomic stability and prudent fiscal management – focusing on infrastructure, sustainability and inclusive growth. The Budget looks promising to arrest the downturns and steer India’s recovering economy in the right direction. Vibrant manufacturing is imperative for India’s growth and the budget has done well to recognise that. Manufacturing industries have been among the biggest winners of the Budget reading, and the fresh incentive for industrial activity will have a definite positive spillover effect on the machine tools segment. Eventually, with accelerated demand and the ability to cater to it, the country could be on track to realise its dream of becoming a $5 trillion economy. 

Financial incentives offered in the budget to help boost businesses 

The flagship Production Linked Incentive (PLI) scheme announced for 14 sectors has been anticipated to pave the way for job opportunities in the next five years. The scheme for design-led manufacturing to build a strong ecosystem for 5G as part of the PLI scheme is encouraging. In the Union Budget 2022-2023, the government has announced measures that will attract more foreign capital in different sectors. There are several path-breaking changes proposed on the direct tax front. Several industry bodies have sought complete exemption from LTCG tax, however, a small relief is announced which will primarily impact large institutional investors. The government’s initiative towards digitalisation by announcing a digital rupee to be issued by RBI would result in reduced printing costs, decreased settlement risks, avoidance of time zone issues, and a cost-effective payment system. These schemes further the government’s vision of paving the way for India to become a superpower in manufacturing and digital transformation. 

Budget provisions to propel local manufacturing of parts and components in the industry 

The government’s emphasis on the four focus areas – planning; financing, including through innovative ways; use of technology; and speedier implementation – and the PM Gati Shakti scheme has strong potential to boost economic transformation, and encourage seamless multimodal connectivity and logistics efficiency. Paving the path for an improved supply chain will enable simpler and seamless delivery of goods, ushering more investments for mass production by local manufacturers. The Budget has underlined the Centre’s commitment to promote local manufacturing. In a nutshell, the FM’s proposals are aimed at inclusive and sustainable development with a focus on rapidly building infrastructure, encouraging skill development, boosting employment generation and advancing swift economic growth for India. 

New technologies for men and machinery safety 

Given the foundational role the manufacturing sector plays in India’s economy, MobilTM Lubricants remains focused on achieving a work environment with minimal exposure to accidents. Mobil has been pioneering growth and innovation for more than a century, while operating with a focus on protecting employees, contractors, customers and communities in areas of operation. For the efficient and smooth operation of heavy machine equipment, Mobilcut™ 250 – a high-performance, versatile, semi-synthetic, water-soluble metalworking fluid – ensures unhindered machine performance, neutralising equipment damage and operational injuries. Rupinder concludes by saying, Mobil also extends expertise through a wide array of technical services under the Mobil ServSM Lubricants Analysis (MSLA) program. Further, Mobil’s latest offering of Mobil ServSM IIoT Insights for integrating automation with machine performance, and Mobil’s nextgeneration oil monitoring system Mobil ServSM Real Time are significantly reducing man-machine interaction. A mix of superior product choices and innovative services are aiding Mobil’s quest for ensuring safety in workshops and achieving assured levels of productivity and profitability. 

For more details, refer to: https://www.mobil.co.in/en-in/business/plastics/mobilserv-iiot-insights