According to Alstom, a crucial pre-requisite to spur growth will be predictable, transparent and competitive public policies.
Alstom said that the centre has clearly demonstrated its intent to push forward with structural reforms in order to enhance domestic manufacturing.
With the upcoming Union Budget 2021, the infra sector has many expectations from the Modi government. Alstom, which has more than 5700 full times employees in India, has manufactured and supplied rolling stock to Chennai Metro, Kochi Metro, Lucknow Metro and Mumbai Metro L3 (Ongoing) and has also undertaken Signalling, Telecom and Power supply projects for various metro corporations including – Delhi, Bengaluru, Lucknow, Chennai Kochi, Mumbai L2 and 7, Jaipur, Nagpur, etc., in line with the ‘Make-in-India’ initiative. It has requested Finance Minister Nirmala Sitharaman to continue with ease of doing business reforms in the Union Budget 2021.
According to Alstom, a crucial pre-requisite to spur growth will be predictable, transparent and competitive public policies. With particular focus on efficient as well as fair support during the execution of the project. Addressing challenges in execution of the project such as timely payments, fast, fair and efficient solving of execution-related issues, and most importantly ensuring compliance of all players with localization requirements. The company also requested the Modi government to ensure a level-playing field between original domestic firms and foreign entities who have demonstrated sincere and genuine efforts to develop domestic capacities as well as capabilities, through significant industrial investments and robust transfer of technologies.
Alstom said that the centre has clearly demonstrated its intent to push forward with structural reforms in order to enhance domestic manufacturing. The PLI schemes for Champion Sectors which were recently announced are a step in the right direction and can unlock the potential to turn the nation into a manufacturing powerhouse. In line with these efforts, the Modi government should consider Indian Railways as a Champion Sector and come up with targeted recovery plans which can further incentivise foreign investments as well as provide a fillip to the ‘Make-in-India’ policy. Moreover, according to Alstom, export incentives as part of the new Foreign Trade Policy can also help the country integrate with global supply chains and leverage its competitive advantage.