Appreciating a point on Government incentives, Naresh states that there is an incentive of about 0.5 to 2% on exports. “If you make and sell in India there is no incentive, unless it is exported. This is a good initiative by the government to encourage the manufacturing system in India and we look forward for more such kind of schemes from the Modi Government.”
However, the government can come up with many schemes which can encourage investors. “For example, a capital subsidy scheme may be introduced to enable the cleaning industry to modernise itself to compete with international manufacturers. Cleaning machines can also be allowed to be classified under “Pollution Control Equipment” so that VAT benefits and other exemptions may be possible,” says Varun.
Under the Make in India mission launched by the Government, Varun suggests that the government could “consider levying excise duty at a concessional rate for the domestic sales since cleaning segment is an upcoming industry and it will help the machines to be more affordable to the end customer. Subsidies for capital investments could help companies to invest more in the cleaning industry. More incentives in the form of reimbursement of export promotion related expenditures will boost exports and earn foreign exchange for the country. The government could also in turn increase the duty drawback rates as a special case for the cleaning industry. Other aspects for buyers of cleaning equipment like concessional rate of interest from banks and hike in depreciation rates can all be considered to boost the industry indirectly.”
“Providing subsidies on capital investment needed on production equipment, tooling costs, dyes, moulds, will help raise manufacturing standards to world-class levels, and also improve the methods of quality inspection,” adds Samarth.
“As of now, the laws act as hindrance to those companies who are doing well. In fact, a lot of international manufacturers have shown interest in at least producing some of their fast selling models locally. But there is a need for government help in terms of better infrastructure and superior technical assistance. While there is no denying that things have improved in the past few years, but we are still lagging behind when compared to developed countries,” adds Samir.
In fact, there should be a financial package available for the product development or design stage, says Debtosh.
“India has an added advantage of being the largest manufacturer of plastic, cotton, aluminium and steel which are the raw material for making cleaning tools and equipment. Our skills of engineering and easy availability of manpower are also plus points. Unless Indian made cleaning tools and equipment are not promoted in the world market, we cannot create acceptance for our products. Even Pakistan has become a serious player in cleaning market as a large supplier of cotton mops and dusters,” he adds.
India has a lot to offer to the world. “From brushes made in plastic to eco-friendly coir, from polyester microfiber to cotton microfiber… The pollution caused by worn out plastic brush, polyester duster disposed in the landfill is seldom highlighted. India has the strength of natural fibre-made products, which is major shift from using plastic, aluminium and steel to jute, bamboo, coir and cotton. Not to forget, imports contributes to depreciating rupee value; manufacturing creates employment,” adds Anjana.
Suggesting methods to promote and encourage India-made products, Nadeem says, “Under Swachh Bharat initiatives, the government should make it mandatory for agencies to purchase certain percentage of cleaning & hygiene chemicals from Indian manufacturers.”
Emphasising further, Vinay says, “Our government needs to impose regulations with respect to maintaining hygiene in public places especially in washrooms. Monitoring air quality in closed public places and installing auto sanitisers in public toilets should be be made mandatory by the government. Strict rules and incentives from the authorities will give a boost to the cleanliness mission and usage of cleaning products.”
In conclusion, as the Modi government has set out with Make Clean India, Make in India and Make India Digital missions, the cleaning industry, even though makes a vital contribution, it is yet to make an impact in sync with the developments.
