What are the Opportunities for Equipment & Heavy Fabrication Emanating from the Union Budget of India in 2023?
The Union Budget of India for 2023 is likely to offer several opportunities for equipment and heavy fabrication solution providers. Here are a few key areas where growth and investment could be expected:
1. Opportunities for Equipment & Heavy Fabrication in the National Infrastructure Pipeline
Since 2021, India is on an infrastructure-building spree. The National Infrastructure Pipeline is the Government of India’s marquee policy scheme with EPC projects worth a staggering outlay of INR 1,08,17,449 crore.
This could create opportunities for equipment and heavy fabrication solution providers in the construction and engineering industries.
2. Opportunities for Fabrication Solutions in the Defense Sector
India has a large defence sector. The union budget in the succeeding years could potentially allocate more funds towards defence equipment and modernisation, which could create opportunities for heavy fabrication companies to supply equipment to the defence sector.
3. Opportunities for Fabrication Solutions Under the “Make in India” Campaign
The government’s focus on boosting the manufacturing sector and making India a hub for global manufacturing could lead to increased demand for heavy fabrication solutions, as new factories and industrial units will require various equipment and machinery.
4. Opportunities in Renewable Energy Sector and Green Manufacturing
The union budget in 2023 has dedicated a fiscal outlay of INR 37,000 crores on renewable energy. The budgetary allocations are in line with the honourable Prime Minister’s calibrated approach to transition Indian manufacturing towards net zero carbon emissions by 2070.
Green manufacturing and uptick in demand for renewable energy can unlock new opportunities for India’s renewable energy sector. For instance, India has a competitive cost advantage in solar energy which has got a budgetary outlay of INR 10,000 crores in the union budget 2023.
The Green Hydrogen sub-sector is yet another avenue that holds promise. It has got an outlay of INR 19,000 crores under the National Green Hydrogen Mission and another INR 16,000 crores under the union budget for 2023.
Overall, the Union Budget of India for 2023 could offer significant growth opportunities for equipment and heavy fabrication solution providers, particularly in the areas of infrastructure development, defense, manufacturing, and renewable energy.
Access the detailed analysis of the opportunities to make in India and procurement and supply chain recommendations for CEOs, CFOs, CTOs, and CPOs of equipment manufacturing and heavy fabrication solution providers in the e-book: “Union Budget 2023; The Decision Maker’s Vantage Point”.