Machine tool manufacturers applaud Budget

The machine tool manufacturers on Saturday expressed their happiness over  proposals made in the Union Budget.  

Talking to Deccan Herald, L Krishnan, president, Indian Machine Tool Manufacturers Association (IMTMA) said: “The Budget has laid out road map which was pending for a long-time. Measures like goods and services tax (GST), tax structure were long overdue.
Reduction in corporate tax from 30 per cent to 25 per cent is a very bold move.”

In his Budget speech, Finance Minster Arun Jaitley said that India has now embarked on game changing reforms like GST which will put in place a state-of-the art indirect tax system by 1st April 2016.

“The ‘Make in India’ campaign initiated by the Government of India can prove to be a significant game changer for the country. It can potentially accelerate manufacturing in India and will encourage Indian entrepreneurs. This will lead to higher level of investment, higher growth and more jobs will be created,” Krishnan said.

The Budget also provided for increased funding of Rs 70,000 crore for infrastructure as also higher allocation for social sector schemes like MNREGA, which had also been welcomed.  “Any public expenditure on infrastructure will kick-start domestic manufacturing growth,” Krishnan said.

The market size of metal working machines in India during 2013-14 was about Rs 8,000 crore out of which 81 per cent belonged to metal cutting machines.
Bharat Fritz Werner CEO Ravi Raghavan said: “Priority for infrastructure and GST has been clearly spelled out which will further boost the manufacturing industry.”

RBI Chair Professor of Economics, IIMB, Charan Singh said, “To encourage Make in India, it is necessary to provide impetus to small units. To provide funds to them and ensure regular availability of financial resources, the government measures will encourage MSMEs to set up business, as most banks are reluctant to lend to MSMEs.”

Ace Designers Managing Director Shrinivas G Shirgurkar said, “Generally growth oriented in the medium term, but in the short term doubtful about the growth for industry.”