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Sanjeev Ranjan, Managing Director, International Copper Association (ICA) India, has said clear transparent policies, and their implementation, are a must, if an investment cycle is to be started in any segment.
On his expectations from the Budget, Ranjan said policies on FDI in real estate, infrastructure (including the power sector), and initiatives to help restart stalled projects, particularly in power, coal, roads and railways, would give economic growth a boost.
Job creation A member of the Copper Alliance, ICA India is the domestic arm of ICA Ltd, a not-for-profit organisation for the promotion of copper worldwide. ICA India actively associates with the growing number of copper users in India.
“The biggest challenge the Finance Minister is set to face in his Budget preparation would be to balance growth versus inflation and, at the same time, help create new jobs, especially in the manufacturing sector,” Ranjan said. Currently, manufacturing contributes just 16 per cent to GDP; this needs to be at least 25 per cent if we are to address the job needs of 12 million people waiting to join the workforce, he added.
Given the rising oil prices, poor monsoon and inflation (CPI) already nearing double digits, the challenges become even more testing, he added.
Fiscal incentives “We expect the government to announce fiscal incentives for new capex, where we can see encouraging participation from sovereign debt funds of countries like Japan, China, Germany, France and Saudi Arabia. This will do well to balance the shortfall in the $1-trillion investment programme that the 12th Plan talks about for infrastructure development,” he said.
Stating that the economy is basically consumption-driven, which would mean extension of sops for demand creation, he said the need of the hour is to de-bottleneck the supply side, “otherwise it may lead to further inflation”.
“The waiver of excise duty till December is a step for demand creation and a matching increase in productivity from the supply side will be of great help,” he added.
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