Instead of tax cuts, we want a demand-oriented budget from Arun Jaitley: Dr Mahesh Gupta, PHDCCI President
New Delhi: MSME (Micro, Small and Medium Enterprise) sector plays a crucial role in the growth of economies like India. No country can overlook the demands and aspirations of MSME entrepreneurs if it has to
Q: What is your perspective on the parliamentary logjam because of which the passage of this bill has got stuck?
Dr Gupta: It is very unfortunate that because of the politics that is being played out, one of the most important bills which will bring revolutionary reform in thecountry is not getting through.
I think wiser counsel should prevail over all opposition parties. Corporate India wants it, all governments want it. It's only a little bit of flaws in the bill thatthey should all sit down and resolve. I think there are three demands that the government is facing from the main opposition parties out of which, one has already been resolved as the government is willing to forego the inter-state tax. Remaining two demands are very minor things that they should resolve over a cup of tea.
Make in India: Major challenges
Q: Prime Minister Narendra Modi's pet project ‘Make in India' sounds very promising but what are the major challenges that this project is likely to face in India. There are so many hurdles like red tapism etc.
Dr Gupta: ‘Make in India' is a concept under which we are inviting both foreign and Indian entrepreneurs to start manufacturing in India. There was a time when there were real problems in setting up manufacturing units in the country.
I think with ‘ease of doing business' initiative of Prime Minister Modi, lot of changes have come into registration processes and starting a unit. Those procedures are helping companies to set up their shops in India. But it's a process that will take up a little bit of time. The manufacturing can't start overnight. Unfortunately, with these initiatives came the slowdown which has dampened the atmosphere a little bit.
Q: Do you have any specific suggestion for PM Modi to make this project a big success?
Dr Gupta: There is an important area that should be looked into and it is innovation. What India is lacking is research and development and innovation in terms of new technologies and products.
So much of research is happening in our CSIR laboratories. They should be made available to the country. The government should promote more innovation and research in the country because if we have to excel then we have to do it by offering right solutions to the consumers. We don't have to excel in terms of making a low-grade solution.
Start-up India: Advice for young entrepreneurs
Q: You are a successful entrepreneur. What advice would you like to give to the young entrepreneurs? What steps government should take to make things easy for start-ups and young entrepreneurs?
Dr Gupta: When I started as an entrepreneur in 1985, things were very-very difficult but today, things have become easier. Indian population of 1.3 billion,connected by internet, is looking at many-many possibilities and they all want to grow very fast. It's going to become a very big market. To meet the demands of a big market, the young entrepreneurs must think that it's the right opportunity to come in and set up their manufacturing unit in India. And this is the right time to be an entrepreneur, whether you want to be a manufacturer or a servicing expert. They will have great advantage as they are coming at a time when there is slowdown because you can bargain everything at this time. At the same time, they must understand that entrepreneurship is a risky business.
Chinese Slowdown: Will it help Indian industry?
Q: There is a viewpoint that the Chinese slowdown offers enormous opportunity to Indian industries. Even MSME minister Kalraj Mishra said the same thing, a few days back. I would like to know if the Indian industry is ready to grab the opportunity.
Dr Gupta: To my mind, we are not competing with China to an extent that MSME sector will grow because of their slowdown. They have created huge manufacturing facilities although demand is not there at the moment. We should have facilities to offer that kind of opportunities. We need to create those facilities first and then should think of benefiting from their slowdown. With their huge facilities, Chinese will always have advantage of pricing compared to the Indian manufacturers.
My success story: Here goes the secret
Q: What is the secret behind your success and what is your message for the young entrepreneurs of India?
Dr Gupta: The secret behind my success is just one thing – whatever products I brought out were all innovative. I give a lot of emphasis on research and development. I would like people to come up with solutions that would be unique and which will offer value to the consumer.
My advice to young entrepreneurs is this – please offer innovative solutions to consumers, add value to the products. Business is what? It's giving less, taking more. It's not like love which is all about giving more, taking less.