Contributing to India’s growth story since 1970s
How competitive is domestic manufacturing at the global level? Is the current rate of interest feasible to turn the ‘Make in India’ initiative a success? How will the Indian manufacturing industry be globally sustainable at the macro level? Will the GST Bill really boost Indian economy? Get these answers from Mr. B.S. Sethia, Director of Elin Electronics, a 780 crore company with four manufacturing units and headquartered in Delhi. The charismatic entrepreneur advocates implementation of rational fiscal measures for effective growth of Indian economy from the grassroots level. Elin Electronics is a leading manufacturer of domestic home appliances, sheet metal components, motors for food processors, water pumps for air conditioners flash lights (torches), plastic components for lighting, automobile, telecommunication, and consumer electronics industries. The ISO 9001, ISO 14001 and TS 16949 certified group is the numerouno for tooling solutions, manufacturing 4 million motors for mixer grinders alone. “The passing of the GST Bill is a welcome move from the government. GST will boost economy, promote exports, and facilitate increased FDI, which in turn will generate employment opportunities. But numerous factors should be taken into consideration to boost balanced and inclusive growth,” says the dynamic Mr. B.S. Sethia (also Chairman of Elcina Electronics Manufacturing Clusters Pvt. Ltd.) According to Mr. Sethia, more of foreign companies will have their setups in India with the implementation of GST and ease of doing work with their low cost funds and imported input material. This will hurt value chain of local entrepreneurs as they do not enjoy level playing field in cost of finance. The ‘Make in India’ initiative will be a success despite increase of FDI based companies if rate of interest on finances offered to domestic manufacturers is low. More manpower should be involved for increased production. Mr. Sethia feels, with reduced interest rates, more entrepreneurs and enterprises will come forward for manufacturing, due to reduced risk.
Mr. Sethia’s Suggestions
Need of large funding for technology development Need to become viable globally even after eliminating customs duty Massive infusion of FDI to appreciate the rupee Offer opportunities to Indian scientists and engineers as techno-preneurs in India Reduce cost of funds (at 3%-6% rate of interest) to make economy cheaper by 20%in few years, as advance countries are going in for negative rate of interest for the sake of growth. Introduce tax free Senior Citizens Bond for senior citizens who keep fixed deposits in banks. The GST Bill is no wonder a step towards simplifying the confusing tax system and consolidating state economies besides paving the way for a solo, cooperative and undivided Indian market. But the government should take initiatives to implement the Bill to the advantage of the economy. In the words of Acharya Mahapragya, a world renowned philosopher and Jain saint – “Think big and go to the root cause to find a permanent solution.” The visionary Mr. Sethia feels that work should begin at the grassroots level on a big scale and various measures including gradual reduction in cost of finance which deserves highest priorityshould be implemented. Only then will India be globally competitive and witness a sustainable economy!