Expectations From Union Budget 2022: Frans Van Niekerk, Atlas Copco India

“India is stepping towards becoming global manufacturing hub and it is anticipated that by 2030, it can add to the tune of $500 billion annually to the global economic stake. In the budget 2022, the focus should be on rationalization and simplification of taxation within the given fiscal space. The much-anticipated tax relief would increase consumer confidence and keep demand robust. Following the Covid-19 outbreak, the manufacturing industry is undergoing a transformation, with global supply lines being disrupted. The emphasis currently is on ‘reshoring’ manufacturing processes and reestablishing markets with faster delivery times. The government’s ‘Vocal for Local’ program need more policy support to adapt to lower working capital and boost resiliency. Also, with the start of work on new scheme for several manufacturing sectors with an outlay of about Rs 16,600 crore for the next five years to support technological upgradation in existing clusters and MSMEs, we might hear some announcement in the upcoming budget. ”