Budget Expectations – Kamal Johari – Managing Director, Nobel Hygiene Pvt Ltd.

Ensure level playing field for Indian manufacturers

Mr. Kamal JohariThe India government is promoting Make in India, but that the intent should reflect on ground and in principal. Currently, some of the policies are not in favour of the manufacturing sector and we are facing heavy import duty on raw materials, whereas the import duty on finished products imported from China is less by 10 per cent. Currently the import duty on ready-to-use diapers (imported) is 16% and import duty on raw materials for manufacturing diapers is at 26%. We can compete with Chinese manufacturers or for that matter any country but the government’s policies should be pro Indian industries and not against them.

But we request for a level playing field for local industry if not preferential treatment. They call it Inverted Duty structure, but we feel that it is high time government corrects it. Government’s  all across the world protect their industry as industry create jobs (for individuals and also supports other ancillary industries)‎.  Pakistan has put diapers in negative list of imports from India as a result huge demand in that country is fulfilled by China and we are losing on the business opportunity.

India has a population of  1.2 billion and there is less than 10 % penetration of the organized diaper industry. There is a huge potential for serious industry players, but for policy level changes are needed,  so that more and more people are encouraged to take up manufacturing.