New Delhi: As part of its wish list for the Union Budget 2016-17, auto component major Bosch today urged the government to announce new policies, including on labour reforms, to bolster country’s competitiveness in the manufacturing sector.
Besides, it has also asked for the government support to achieve $200 billion turnover as outlined in the Automotive Mission Plan 2026.
“Labour reforms is one of the key factors which will enable multinational companies to set manufacturing activities in India on a large scale. We look forward to some practical reforms that will help in productivity improvement,” Bosch Ltd Joint Managing Director Soumitra Bhattacharya said in a statement.
In April last year, the company had declared a lockout due to worker unrest at the Jaipur plant. The plant, which has a history of labour issues, was also shut for a day in March on account of a day-long strike by the labour union over wage settlement.
In 2014, workers at the company’s Bengaluru plant had struck work for more than three months over wage settlement.
Later on, Bosch group Chairman of the Board of Management Volkmar Denner stated that repeated incidents of labour unrests could hurt investments in India.
Bhattacharya said the government has made a very good start last year in fiscal deficit, infrastructure project and more can be rolled out this year.
“We expect the new budget to further complement and drive these initiatives as well as bring in new policies to bolster India’s competitiveness in the manufacturing sector,” he added.
Besides, as part of the auto component sector, the company looks forward to the government support to achieve $200 billion in turnover as outlined in the Automotive Mission Plan 2026 – a collective vision of the Government of India and the Indian automotive industry, Bhattacharya said.
“We are optimistic, the Union Budget 2016 will focus on: roll-out of Goods and Service Tax, infrastructure improvement, labor reforms and reduction in corporate tax among others,” Bhattacharya said.
The government will present the Union Budget for 2016-17 on February 29.
Bosch shares today closed 2.89 per cent up at Rs. 16,390.80 on BSE.