To forge a path to prosperity, domestic manufacturing must take a giant leap

livemint.com:

This is part of a special series of articles by the country's foremost voices, ahead of Union Budget 2024, aiming to draw attention to the critical reforms that can help India in its journey to become a developed nation by 2047. In a few days from now, finance minister Nirmala Sitharaman will present her seventh consecutive budget, a record in India’s history. This is also the first Union budget in the third term of Prime Minister Narendra Modi’s government. Undoubtedly, we expect directional continuity in policy announcements with a thrust on economic growth, social development and sustainability, in line with the vision for Viksit Bharat 2047.

Here are the key priority areas this budget should focus on. The first is to scale up manufacturing. Domestic manufacturing must take a giant leap for India to be a global manufacturing hub.

This is a necessity if we are to create scores of jobs and chart out a path for prosperity for our citizens. A 360-degree planning of the entire value chain—from design to manufacturing—must be done, especially in hi-tech areas such as defence, electronics and semiconductors. Micro, small and medium enterprises (MSMEs) are an integral part of the ecosystem, and the industry must work with the government to enhance their presence and leverage their strengths.

Second is a simplified tax structure. The government has taken numerous actions to make the tax structure one of the best in the world. We expect continuity in tax policy, with further simplification of the tax regime as it will enhance ease of doing business and help improve investor confidence.