Budget to see more capex and manufacturing boost; focus on semiconductors, renewable energy & defence: Rohit Agarwal
Rohit Agarwal, Executive Vice-President, Kotak Mahindra, says it is anticipated that within the next five to ten years, the manufacturing sector will contribute approximately 18 to 20 percent to GDP. Agarwal believes the government will continue to allocate a substantial budget for capital expenditures, along with incentives and standard operating procedures (SOPs) aimed at the manufacturing industry. This focus will be reflected in the Budget, as the government is committed to enhancing India's self-sufficiency in various products that are currently imported.
Within manufacturing, EMS has been a huge success story but within it, it is time to move from mobile PLI success to other stories. To start with that success will come more from the semiconductor value chain. One should be overweight on semiconductors followed by renewable energy and defence.
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What should one watch out for in this year’s Union Budget when you talk about manufacturing because that is where most of the government’s focus has been and it has reaped quite a lot of benefit when you talk about the way it has helped boost the GDP growth as well.
Rohit Agarwal: The focus of this government has been on manufacturing through the Budget document and also apart from the Budget document, they have been taking various measures.
We find no reason to believe that that trend will not continue because for India on the GDP side, manufacturing contributes early teens to the GDP. We should expect that in the next five to seven years or maybe ten years, we will be going closer to 18 to 20 odd percent of
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