Budget 2022: Impact of Gati Shakti Plan on Tools & Hardware
Finance Minister Nirmala Sitharaman has presented the budget 2022. BookMyParts.com has analyse the impact of Budget 2022 overall from its own business perspectives and outlook for manufacturing, industries and infrastructure segments and demand for Tools & hardware in particular. Finance Minister Nirmala Sitharaman has presented the budget 2022. BookMyParts.com has analyse the impact of Budget 2022 overall from its own business perspectives and outlook for manufacturing, industries and infrastructure segments and demand for Tools & hardware in particular.
The major highlights of the budget 2022 is 35 % plus increase in the capital expenditure of central government which is likely create demands across sectors and particularly among manufacturing sector and industries as a whole. In her budget speech, finance minister has mentioned that electronics manufacturing has been growing at a rapid pace and custom duties rates are calibrated to facilitate domestic manufacturing of wearable & hearable devices, electronics smart devices and meters etc.
With the increase in duty rates, items such as umbrella, imitation jewellery, loud speakers, headphone, earphone, solar cells, x-ray machines, parts of electronics goods are likely be costlier. One important news is about the highest GST collections for the month of January 2022, The gross GST collections for the month of January 2022 is Rs.140,986 Crore, which is highest since the inception of GST in 2017. This shows the signs of the economic recovery and better business environment despite Omicron and spread of Corona virus in India.
Another significant announcement in the budget 2022 is about Gati Shakti National Master Plan which is a transformative initiative for robust economic growth & sustainable development. More importantly, this is driven by seven engines identified by Govt. of India roads, railway, airports, ports, mass transport, waterways & logistics infrastructure.
Gati shakti is a game changing initiative announced by Govt. of India. Under this plan, the National Infrastructure Pipeline (NIP) envisages an average spend of Rs, 20 Trillion per year over the next five years. This will create demand for various types of industrial tools, hardware including air tools, bench tools, power tools, hand tools, measuring tools, construction equipment, safety tools & much more.
As per the estimate made, Gati Shakti in its entirety will create demand worth Rs. 5000 Crore of only tools items annually. For the next five years, the consolidated demand for tools would cross Rs. 25,000 Crore (3.25 Billion USD) only from Government sponsored projects.
Indian tools manufacturers include power tools, hand tools, air tools, bench tools and other industrial category tools highly consumed in Infrastructure projects that have limited domestic production capacity and therefore there would be larger dependence on import of tools.
Salient features of Gati Shakti Project
# GatiShakti to break Departmental silos and institutionalize holistic planning for stakeholders across major infrastructure projects
# All Departments to now have visibility of each others’ projects through a centralized portal and system
# Multi-modal connectivity to provide integrated and seamless connectivity for movement of people, goods and services
# GatiShakti to generate multiple employment opportunities, cut down of logistics cost, improve supply chains and make it globally competitive
# The project intends to save 5-6 % of costs spent on logistics with better coordination in place between central ministries
# Gati shakti master plan will help raise the global profile of the manufacturers & help them compete with their counterparts worldwide
In nutshell, with the ambitious plan Gati Shakti launched by Govt. of India in this budget 2022 is fueling the demand for tools and hardware to next level and India will witness outstanding growth opportunities for manufacturers and entire stake holders of Industrial & construction tools communities.
BookMyParts along with its partners are ready to capture these opportunities in the India market and offer its wide range of tools at an affordable price. There are 400 plus Metro/cities/Towns where BookMyParts has ensure availability of tools & hardware products through distributors, dealer, franchisee stores and also through E-commerce online wherein 18000 pin codes are served in India.
BookMyParts.com is ready to serve the requirements of Prime Minister Narendra Modi’s ambitious plan Gati Shakti wholeheartedly. BookMyParts.com will ensure continuous and round the clock availability of all types of tools, hardware, components and accessories required for the successful execution and implementation of the Gati Shakti project.