By Aravind Melligeri
The Union budget 2019-20 is most awaited as it comes at a time of economic turbulence where efforts needed to bring back buoyancy, boost growth and create jobs. Here are some suggestions for Budget 2020 that could help accelerate growth in the country.
Focus on Tier 2 & 3 cities:
Future growth will be fueled by Tier 2 & 3 cities. To ensure equitable development, it is important to build infrastructure in these cities, making them attractive for industries and investors alike. The government must also allocate resources to create availability of better education, health facilities, and housing to cater to the growing base of professionals who would be employed by this growth. It is time to take opportunities to people as most professionals in India move to bigger cities and metros in search of better opportunities. Growth at this level will also help tackle regional and economic imbalances as well as reduce strain on civic amenities.
Focus on Cluster-based and sector-specific Growth:
A smart way to kickstart development could be to create industrial clusters based on resource availability. This would help build efficiencies and better profitability when compared to unplanned and scattered development, which usually leads to higher costs of logistics and lower efficiency. The education system needs to be strengthened, with future job-ready skills being imparted at Polytechnics and Engineering colleges through dedicated, industry-led Skill Centre’s. On the job training, through apprenticeship programs need to be strengthened, perhaps even made mandatory, creating a pool of adept professionals available in the workforce. In order to build India as a lucrative destination for manufacturing, sector-specific incentives should be introduced.
Consistent policies to hold investor interest:
There is also a need for clear visibility and consistency in policies, which allow industrialists and investors to look at long term windows with higher confidence. While the Indian aerospace sector has evolved over the years, it still requires nurturing, an extension in the Sunset clause will only help the sector flourish and contribute positively to the economy.
Merchandise Exports from India Scheme (MEIS) replacement to stay focused on sectors that sustain and create new jobs.
We urge the government to continue the path to driving labor reforms, which will attract more investment for manufacturing in India.
(The author is the Chairman & CEO at Aequs Inc)