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Budget 2023: Reforms are required if we’re to become a global manufacturing hub

India’s business climate is an outlier given the current global headwinds. But further work is required with regard to taxation, credit, incentives, and more, to ensure that the growth trajectory stays on course.

December 12, 2022 / 10:17 AM IST
Deepak Sood, Secretary General, ASSOCHAM

Deepak Sood, Secretary General, ASSOCHAM

In the current geopolitical situation where transnational companies are seriously working on a China-plus strategy, India is positioning itself to emerge as a global manufacturing hub by 2030. The union government has unveiled a series of measures like Gati Shakti (supply chain), Production Linked Incentives (PLI), Make In India, reduced corporate tax rates (to 15 percent), etc., to attract global investment and promote domestic enterprise.

These measures have already started showing results even as the overall global sentiment has been queered by inflationary headwinds.

Union Finance Minister Nirmala Sitharaman will present the budget for 2023-24 against this backdrop. India Inc. is pinning great hopes on it for several bold measures that will ensure that India continues to remain an outlier with a sustained growth rate of 7 percent.

India is no longer constrained by Chinese dominance, which has been dented by Covid and geopolitics. Following serious supply-chain disruptions during Covid, MNCs realised that it would be wise to diversify their supply-chain risks.