Wishing everyone the best! - Vice Chairman's MessageDear Readers,
We have seen the ‘pro-developmental’ budget by our Honorable Finance Minister, Mr. Arun Jaitley. However, there have been very few takeaways for the petrochemicals, plastics and allied manufacturing industries. We would like the NDA government to relook at the decisions on duties and taxes pertaining to manufacturing industries. Import and customs duties on raw materials and components are required to be reduced and rationalized to equate indigenous machines at par with imported machines in quality & price. These are the key factors which need to be addressed by the government without waiting for the next budget.
Duty reduction to 5% for extrusion and zero for Injection Molding Machinery in FTA with South Korea & ASEAN has put domestic manufacturers at pricing disadvantage. Chinese counterparts are routing their machinery through ASEAN. This is affecting the Indian Machinery Industry. In addition to this, import duty of 7.5% or more on technology parts being imported from Europe and Japan puts additional burden on material costs. We expect the new government to restructure the import duty to benefit to Indian manufacturing sector as well as the processors involved. Apart from these there are inherent issues such as high capital costs, inadequate infrastructure and lack of skilled manpower when compared to our foreign counterparts. This seems possible only if the new Government stick to their ‘pro-development’ agenda and some positive initiatives come up in near future to address these concerns and revive the manufacturing sector.
Although manufacturing industry is going through turbulent time and various issues pertaining to input costs, quality and technology are showing concerns, we must not neglect the fact that, India is still the potential market with lot of growth opportunities for small to large scale enterprises. India’s per capita plastics consumption is also increasing, which means that we have options and opportunities for producing, consuming and recycling plastics in a better way.
Over the years, PMMAI has been actively involved in addressing such issues. Various interactive seminars and workshops are organized by PMMAI to give interactive platform to industry and stakeholders. ‘Tecnommerce’ and ‘Plasti-Share’ (Seminars & Workshop both held at Ahmedabad) have gained notable success and encouragement from all levels. We must encourage such initiatives, to boost our industry growth prospects.
Friends, I suggest & request all manufacturers of Plastic Machines, Injection, Blow, Extrusion, Roto-molding as well as components, spare parts, accessories and allied equipments to be an active member of PMMAI, if not enrolled as yet, so that the growth and development of this important sector, so far neglected, can be accelerated by collective approach and efforts. Let us all actively involve and be a part of this growth trajectory.
Wishing everyone the best!
S. V. Kabra
Vice Chairman - PMMAI
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