'Make In India Needs Export Growth'

The government must focus on bilateral treaties to ensure competitiveness of Indian exports in key markets.

- Sourav Majumdar

VENTURE PAWAN GOENK A , managing director of auto and farm equipment major Mahindra & Mahindra, speaks to Fortune India on being competitive in global markets, the Budget’s moves on the farm sector, and corporate tax rates. Edited excerpts:

Given the push to the farm sector, what impact do you think Budget 2018 will have on your company?

Tractor growth has been very good last year. If you see the tractor growth that has happened last year and the year before, one would not say there has been any farm distress. In fact, for January, we had 40% growth.

Tractors are not discretionary purchases. They are tools of the trade. Therefore, buying tractors doesn’t necessarily mean the farmers are well-to-do. There are a lot of things they want to do that they can’t do because all the income is going into essentials. Of course, it will have a positive impact because a lot more discretionary income becomes available. But we weren’t hurting even earlier. For our business, which is agri- and farm equipment, it probably doesn’t make too much of a difference. But for consumer products, appliances, other discretionary purchases, it will probably make a big difference. That’s where the distress was showing more, which will get corrected.

Let me [also] make another point. Our quick calculations show that this [minimum support price to farmers] will cost Rs 30,000 crore extra in terms of subsidy for food. And because of fiscal expansion, despite 3.5% [deficit] becoming 3.3%, Rs 30,000 crore happens to be available.