Foreign cos bet big on Modi's Make in India initiative

Foreign companies are lining up to make the most of Prime Minister Narendra Modi's Make in India initiative. They are hoping the Budget will bring with it a host of measures to make their life easier when it comes to structural and policy bottlenecks, reports Rituparna Bhuyan and Areeb Sherwani. France could be a key player in making the Modi government's Make in India campaign a roaring success.Over 950 companies from France including fortune-500 names like Airbus, Danone, Schneider and Renault have pumped in close to USD 19 billion in India already and are getting ready to scale up their engagement with the country. However for that, they say north block will have to announce several measures in Budget 2015. Lower taxes is just one item in a long list.Yves Guillaume President - India, Airbus Group, said, "Cost of maintenance is higher in India and Civil Aviation ministry is pushing for lower taxes."Sumit Sawhney MD & CEO, Renault India, said, "Excise duty was rolled back by government, we are seeking reconsideration. We can see 25-40 year old vehicles plying on the road. If government can stop cars older than 15 years in major metros, it will help de-clog roads, environment and help auto industry."Airbus, which has joined hands with the Tata group to bid for the Rs 13,000 crore Avro aircraft replacement contract, also wants a higher FDI cap in the defence sector. "We need more control to facilitate tech transfer. It will help make India an export base", said, Guillaume.Technology transfer would be meaningless without a strong IPR regime. One that's skewed towards R&D and that's a big demand for companies engaged in the agri-product space. Laurent Marcel MD, Danone Nutricia, said, "We need measures to promote innovations so as to create Indian product. We need to promote R&D."The list of demands is endless and these companies may have to settle for considerably less when the finance minister presents his Budget document, especially on the FDI front.Amitabh kant Secretary, DIPP, said, "Apart from multi-brand retail, all other sectors are liberalized. Not many sectors are left to open up FDI."

Also Read: Countdown to Budget 2015: What PEs want from JaitleyThis sounds ominous but as the finance minster has said numerous times, the Budget is not the only event where policy changes are made or initiated. So, for these French companies, getting their wishlist granted may turn out to be all about how well the finance minister is able to convince his peers in other departments to push ahead with non-tax reforms.