Policy

Stimulus package: Industry reactions

Our Bureau Chennai | Updated on November 13, 2020 Published on November 13, 2020

The biggest beneficiary of the stimulus package is the auto Industry with ₹57,000 crore worth of incentives. It will benefit the whole economy due to the high multiplier effect of the auto industry activity. It will help the country move towards having an export oriented auto components industry. The Advance Chemical Cell batteries, a key pillar of the EV revolution, is about to sweep India by 2025. We hear a lot of new capital interest in this sector and this stimulus will definitely make the payback on new investments more compelling. India needs an alternative to Li-ion (due to its import dependence) – a technology which can use the abundant indigenous raw material available in India. This stimulus has just given a ‘shot in the arm’ for this space. With regard to the high efficiency solar PV modules, India produces only 3GW of solar cell / modules while imports 80 per cent from China. Government has proposals for 10 GW new capacity addition and this stimulus means these proposals can now take off on a strong wicket. Finally, the ₹6,322 crore stimulus for steel can be a game changer for higher scale and better technologies to be deployed for the high grade/high value-added steel.

Harssha Shetty, Director

Marketing, International Business

Vedanta Group

Demand of metals is set to increase as one-third of the stimulus is for automobile sector. Metal plays a major role by weight in automobile sector. Also, the ₹18,000-crore stimulus for battery cell makers will see demand for lead increase.

Sandeep T Jain

Senior VP

Bombay Metal Exchange

In case of rubber goods industry, especially Non-tyre segment, the duty differential between inputs and finished goods are irrational. The duty on inputs is either nil or as much as twice the duty of finished goods. To be specific,70 per cent of raw materials used by the industry are subject to higher duty thereby making the sector non-competitive. For sustainable growth in any industry and its value chain the following duty structure is ideal: highest on finished goods; medium on intermediaries; lowest on raw material. To bring parity in the entire value chain and to make the campaign of ‘Make in India’ and ‘Atmanirbhar Bharat’ a success story, the Government must consider correcting this anomaly at first place.

Rohit Kumar Singh

Director General

All India Rubber Industries Association

This PLI scheme will help Indian apparel sector to build the much needed scale; will also bring specialisation as a strategy to garner focus on top man-made fibre products which are in great demand globally. MMF apparels is a ₹3-lakh crore opportunity in the US market alone. We are confident that Indian apparel sector will use this opportunity to build capabilities to achieve double digit growth in exports.

Prabhu Dhamodharan

Convenor

Indian Texpreneurs Federation

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on November 13, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.