'Govt should consider fiscal incentive for OEMs'

Budget 2021 | Important for govt to consider fiscal incentives for OEMs that source local goods, says Moglix founder

Representative image. Credit: iStock.

By Rahul Garg,

“The first paperless budget is symbolic of the offline to online shift that has already accelerated. Beginning with the massive supply chain marvel of distributing the Covid-19 vaccine to 1.3 billion people, 2021 will be an inflection point in India’s supply chain transformation journey.

The outlay and the fiscal prudence in the execution stages of the National Infrastructure Pipeline will set the stage for a continuous improvement program for the manufacturing supply chain.

It will also be important for the government to consider fiscal incentives for OEMs that source goods made in India from the local MSME supplier ecosystem and unlock new avenues for local demand generation and distribution of industrial goods and manufacturing services.

The government should consider fiscal innovations like supporting investment by large enterprises in long-term digitisation projects and technology collaborations to sustain the momentum gained in the Digital India initiative.”

(The author is Founder, Moglix)