Will lead to long term growth of the economy
01 February 2017, New Delhi: Indian Electrical and Electronics Manufacturers’ Association (IEEMA) welcomes the Union Budget 2017 – 18 presented by the Hon’ble Finance Minister, Shri Arun Jaitely today.
IEEMA President, Mr. Sanjeev Sardana said, “Increased allocation to Deen Dayal Upadhaya Gram Jyoti Yojna and Integrated Power Development Scheme will provide a much needed impetus to the sector.Tax relief of 5% for companies below Rs. 50 Crore turnover is welcome. This will encourage the morale of the industry as 80% of electrical equipment industry is under MSME”.
The budget is focused on the long term growth of the economy, which will have a corresponding impact on the Indian Electrical equipment industry.
Mr. Sunil Misra, Director General, IEEMA said, “Given that this is an election year, the budget doesn’t seems to be populist, on the contrary bold decisions on electoral funding and tax compliance are a welcome step. However, Individual salary relief which was expected has only come as a small relief.”
The increase in allocation to the rural sector such as MNERGA, providing 1 crore housing for poor, thrust in Pradhan Mantri Gram Sadak Yojna and government’s commitment to electrify all villages by May 2018, will result in an increase in domestic demand.
The increased expenditure in the rural and infrastructure sector will result in higher disposable income within the economy leading to long term stable growth of the country.
Total outlay of 3.96 lakh crore in infrastructure sector is a positive news.Further, the government’s target of putting up 3500 kms of railway lines, modernization of railway stations through private partnership and new metro rail policy will benefit the domestic electrical industry.
The Finance Minister also announced, 20 GW of solar capacity to be installed, giving impetus to the renewable sector.
About IEEMA: INDIAN ELECTRICAL & ELECTRONICS MANUFACTURERS’ ASSOCIATION (IEEMA) is the first ISO certified industry association in India with 800+ member organisations encompassing the complete value chain in power generation, transmission and distribution equipment. Founded in 1948, IEEMA has a pan India presence with its corporate office at New Delhi, registered office at Mumbai and regional offices at Kolkata and Bangalore. IEEMA members have contributed to more than 90% of the power equipment installed in India. The Indian electrical equipment industry size in 2014-15 was in excess of USD 25 billion with exports of USD 5.6 billion. The industry provides direct and indirect employment to over 1.5 million persons, and to over 5 million across the entire value chain. IEEMA holds product specific conferences, seminars and large exhibitions like ELECRAMA which is world’s largest event for T&D equipment industry and INTELECT, an integrated tech platform for future of electricity. The second edition of INTELECT is scheduled in January 2017.
