- By Aditya Pratap Singh
- Tue, 14 May 2024 11:46 AM (IST)
- Source:JND
How do Government Policies Help Businesses? We must have heard eminent economists saying ‘The direction of any nation’s economy is derived from Government policies’ as an industry-friendly policy encourages growth and its open path for concrete investment as well. A major part of encouragement comes from incentives and subsidies that businesses get with the help of policies. Not just that, the government also offers grants, tax leaves, and land on lower lease amounts to companies engaged in research and development (R&D) or those investing in advanced technologies.
This initial support from the government provides businesses with the right ecosystem to start their units where they have fewer financial constraints and they also get to invest their surplus fund into further innovation. Government initiatives that encourage businesses to invest in R&D, develop new technologies, and embrace innovative approaches are already having a significant impact on the manufacturing sectors of Automobiles, Infrastructure, Energy, Technology, and others.
Infratech Sector
Policymakers encourage groundbreaking innovations that propel economic growth and worldwide competitiveness by encouraging investment in advanced technologies and fostering collaboration between academics, industry, and government.
Commenting on the state of India's manufacturing sector, Kapil Bardeja, CEO and Co-Founder of Vehant Technologies, stated, “Owing to the rising demand, India's manufacturing sector is evolving dynamically, driven by strategic government initiatives. The nation's demographic dividend is a major contributing factor to its growth. The government's emphasis on schemes like "Make in India" and the Infrastructure Development Initiative aims to boost domestic manufacturing across various sectors. These initiatives propel investment and promote innovation, favoring an environment for business expansion and technological advancement.”
“Boosting technological innovation has led Indian manufacturers to build and provide advanced AI-driven solutions in every field. To name a few, Security and surveillance solutions and smart and Safe City solutions. Enterprises are using AI-driven solutions for manufacturing as well as maintaining the security of their premise, addressing bottlenecks and facilitating smoother operations.”
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“Moreover, ease of doing business reforms streamline regulatory processes, improving the overall business environment. Together, these policies and investments facilitate business expansion and technological innovation, positioning India as a competitive player in the global manufacturing landscape,” Mr Bardeja further added.
Energy sector
Policymakers establish an ideal environment for the growth of CBG energy projects by encouraging cooperation among industry participants and offering financial assistance for the advancement of technology and infrastructure.
Prince Gandhi, CEO of CEID Consultants & Engineering Pvt Ltd, believes, “Government policies and investments have contributed significantly to India's manufacturing sector's exceptional growth and innovation. As a major EPC for CBG projects and developer of cutting-edge equipment used in CBG plants, we've experienced firsthand the positive effects of such initiatives. Such measures, which range from streamlined regulatory frameworks to incentives such as the SATAT scheme, have not only stimulated business expansion but encouraged innovation. We firmly believe that this collaborative effort between the government and industry continues to lay the foundation for a more sustainable and competitive manufacturing sector.”
“We are certain that this combined effort between the government and industry is building the groundwork for a sustainable and competitive manufacturing ecosystem. With our expertise in developing advanced high-pressure water scrubbing gas purification systems, as well as our diverse range of manufacturing essential equipment for CBG plants ranging from High Flow Agitators to Knife Gate Valves, we have committed ourselves to driving innovation and excellence in the manufacturing landscape, ensuring a sustainable and prosperous future for all,” added Mr. Gandhi.
