Con­tribut­ing to In­dia’s growth story since 1970s

Business Sphere - - Prestigious Awardee 2015-16 - By Our Cor­re­spon­dent

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!

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