Indian Machine Tool Manufacturers’ Association (IMTMA) has said that the budget presented by Finance Minister Nirmala Sitharaman is a significant one for India’s manufacturing sector as well as the machine tool industry. The budget looks a promising one to arrest downturn and steer the country’s economy in the right direction, the association said.
“The lower 25 percent corporate tax on companies with a turnover of up to Rs 400 crore is expected to boost investments. It is a positive step towards development of MSME sector and enhancing their production capacities. Machine tool industry is the backbone of MSMEs and this bodes well for machine tool manufacturers. Indian machine tool industry has around 1000 units engaged in the production of machine tools, accessories/attachments, subsystems and parts. More than 90% of these are in the MSME sector and this sector stands to benefit immensely from this budget. The ministry’s move will therefore eventually give an uptick to the machine tool industry’s business,” said V. Anbu, Secretary, Director General & CEO, IMTMA.
Conventionally the Indian capital goods sector has been dependent on imports. The reduction in customs duty on certain raw materials is expected to promote indigenous manufacturing. The government’s move towards imparting new age skills like artificial intelligence, internet of things, big data, 3D printing, virtual reality, and robotics as a part of the education curriculum can create a large pool of manpower with industry-relevant skills. This will also create avenues for new jobs, IMTMA observed.
“Machine tool industry needs to gear up to the opportunities that are likely to rise in future. Vibrant manufacturing is imperative for India’s growth. The incentives announced in the budget are but a beginning. It may take some time for the sops to trickle down to the end users resulting in demand for goods and services,” he pointed out.