Delayed payments are a big drag on the economy

Safe and reliable electrical supply is critical for the growth of the manufacturing sector - one of the key pillars of Indian economy. And for this electrical and electronics industry will have to play its role as well.
Delayed payments are a big drag on the economy
Safe and reliable electrical supply is critical for the growth of the manufacturing sector - one of the key pillars of Indian economy. And for this electrical and electronics industry will have to play its role as well. Electrical and electronics industry is going to be the backbone for the manufacturing growth in India, says Vipul Ray, Managing Director, Elmex Controls Pvt Ltd – one of the leading players in terminal blocks manufacturing. At ELECRAMA 2020, Elmex will launch a new range of products for the global market. In this interaction, Vipul Ray, who is also the Vice President of Indian Electrical & Electronics Manufacturers’ Association (IEEMA), highlights on the challenges before the industry and probable solutions to overcome these hurdles. 
 
On the eve of Budget 2020-21, what would be your suggestions to the government to give a boost to the industry?
 
Electrical industry is at a disadvantage when it comes to customs duty structures. Our request to the Government of India (GoI) is to ensure that we have a level playing field by way of correcting the inverted duty structures and by eliminating zero duty imports and project imports. To give a boost to the economy and to our sector, we are looking for better contract enforcement and timely payment. Our cash flow is severely affected due to long overdue payments with State and Central PSUs and this needs to be addressed on priority.
 
What is plaguing the growth of the industry? 
 
Delayed payments are a big drag on the economy and unless the industry sees some tangible action, it will be very difficult to change the sentiment.  Imports, coming under ‘project imports’ that are of inferior quality, are hurting us. When you benchmark cost and quality, Indian manufactures are quite competitive. It is the Inverted Duty structures and low quality products that are hurting the industry especially the MSME.
 
Which are the new areas of opportunities that Elmex Controls is looking to tap?
At Elmex we have a philosophy of “Converging Innovations and Expanding Solutions”, essentially meaning that we extend our core competencies to serve newer applications. And hence we have developed various new products for the solar industry, control and instrumentation industry, railways, etc. We have also introduced new state of the range of connectors with push-in and spring clamp technologies.
 
India aims to make manufacturing a $1 trillion sector by 2025. How important will be the role of electrical & electronics industry?
 
Electrical and electronics industry is going to be the backbone for the manufacturing growth in India. This growth is only possible if we have safe and reliable electrical supply. Also, the new development in Internet of Things (IoT), artificial intelligence (AI), electric vehicles (EV), etc is going call for lot of design, development and manufacturing capabilities for industrial and power electronics.
 
What will the focus of Elmex Controls at Elecrama 2020?
 
Elmex will be launching an entire new range of products for the global market! The focus will be to bring a multitude of solutions for our customers in the areas of connectivity, PV solar, metering and protection, C&I, railways, etc. Bringing value added products for our customers and channel partners is our endeavour and we intend to delight them in 2020!
 
Any message to participants of Elecrama 2020…
 
Wishing all the exhibitors and visitors lot of success for Elecrama 2020! This is a platform where we show the strength of Indian industry let us make it a big success and make our country proud!
 
Share post:

Related Stories