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Samprada Singh , Chairman, Alkem Laboratories said his expectations from the Budget are that SEZ benefits should be provided to all the exporting units across the country. Singh stated that this will lead to greater utilization of manufacturing facilities, higher capacity utilization and increase the horizon for international strategic alliances.

 

Apart from that, Singh hopes for tax benefits in backward areas. He believes that it will help in reducing regional imbalance in the country.

 

Excerpts from the interview with Samprada Singh:

 

Q: What are your expectations from the Budget?

 

A: This Budget is the last full Budget of the current government in the present term. My expectations from the Budget are that there should be SEZ benefits for all exporting units and tax benefits in backward areas.

 

SEZ benefits for exporting units:

 

Local pharmaceutical companies dominate on the domestic front and have been successful in launching several advanced new molecules. This has led to reduction in import of medicines to nearly zero.  Our country is emerging as a major exporter of pharmaceuticals. But, as a country, we are yet to get a significant market share in developed markets, like USA and Europe.  For this, Indian companies need to be increasingly competitive in these markets.

 

To make exports more competitive, we appreciate the benefits available to exporters under the SEZ policy.  But setting up new units in SEZ is counterproductive for the country.  We have to invest once again and go through the process of obtaining regulatory approvals.  On the one hand, this increases our costs. On the other hand, this leaves our existing plants unutilized. 

 

To have a win-win situation, the government should extend benefits available to SEZs to all the exporting units across the country.  This will lead to greater utilization of manufacturing facilities, higher capacity utilization and increase the horizon for international strategic alliances.

 

Tax benefits in backward areas:

 

We have set up manufacturing base in two such areas. We have seen how the industry has changed the entire economy of these regions.  These tax benefits help in reducing regional imbalance in the country. The government cannot directly do this job.  My suggestion is that the government should provide similar benefits to the other backward areas also, so that poverty is eradicated from the entire country.