Methods India CEO Advocates for Targeted Manufacturing Incentives in Upcoming Budget
Jacob Jose, the Chief Executive Officer and Managing Director of Methods India, has articulated a compelling vision for strengthening India's domestic manufacturing ecosystem through targeted fiscal measures in the upcoming Union Budget 2026. In an exclusive interview with Mint, Jose emphasized that strategic policy interventions could significantly enhance the competitiveness and scalability of engineering-led industries across the nation.
Policy Support for Capital Goods and Engineering Industries
According to Jose, India's remarkable infrastructure momentum must be complemented by consistent and predictable policy support for the capital goods and engineering sectors that facilitate ground-level execution. He highlighted several critical areas where budgetary announcements could make a substantial impact.
First, faster project clearances and predictable capital expenditure outlays would provide much-needed stability for long-term planning. Second, continued focus on developing ports, power, mining, and logistics infrastructure remains essential for sectoral growth. Third, rationalization of customs duties on critical raw materials and components would help engineering companies manage escalating cost pressures more effectively.
"Rationalisation of customs duties on critical raw materials and components, along with incentives for capacity expansion, would help engineering companies manage cost pressures and scale responsibly," Jose explained during the interview.
He further emphasized the importance of ensuring timely payments across public sector projects, noting that this directly impacts cash flows and execution efficiency in large turnkey contracts, which form the backbone of infrastructure development.
Strengthening Domestic Manufacturing and Supply Chains
When questioned about targeted incentives for domestic manufacturing of capital equipment and industrial machinery, Jose responded affirmatively. "Yes, targeted incentives can play a meaningful role in strengthening India's domestic manufacturing ecosystem," he stated.
The Methods India CEO elaborated that capital equipment manufacturing represents an engineering-intensive sector requiring substantial long-term investment in fabrication capabilities, advanced technology, and skilled manpower development. Rather than implementing broad subsidies, he advocated for focused support mechanisms.
These could include:
- Production-linked incentives specifically designed for capacity creation
- Accelerated depreciation benefits on plant and machinery investments
- Research and development incentives to foster innovation
- Support for localization of critical components currently imported
"Such measures would encourage companies to invest deeper within India while building globally competitive capabilities and gradually reducing import dependence over time," Jose added.
Enhancing Global Competitiveness for Export-Oriented Firms
For export-oriented engineering companies operating in highly competitive international markets, Jose proposed several budgetary considerations to improve their global positioning.
Logistics efficiency emerged as a primary concern, with recommendations to reduce costs through enhanced port infrastructure, faster customs processing, and improved multimodal connectivity. Financial accessibility represented another crucial area, where easier access to export credit, longer-tenure financing for overseas projects, and support for performance guarantees would enable Indian companies to bid more confidently for substantial international contracts.
Additionally, Jose suggested that diplomatic and institutional support for Indian engineering firms executing projects overseas could help mitigate execution risks and navigate geopolitical challenges more effectively.
Defining a Successful Union Budget 2026
When asked what would constitute a successful Union Budget 2026 for India's capital goods, manufacturing, and infrastructure ecosystem, Jose outlined several key markers of achievement.
"A successful Union Budget would reinforce continuity—maintaining momentum in infrastructure spending while strengthening the industrial backbone that supports it," he remarked.
For the capital goods and manufacturing sector specifically, clarity on long-term capital expenditure priorities, policy stability, and support for domestic value creation would represent significant progress. The Budget should also acknowledge the vital role of export-driven engineering companies in positioning India as a global manufacturing and project execution hub.
"If the Budget enables ease of doing business, improves access to capital, and supports skill development, it will set the foundation for sustainable industrial growth," Jose concluded.
Trends and Opportunities in Bulk Material Handling
Beyond budgetary expectations, Jose shared insights into key trends and opportunities within the bulk material handling systems market. He noted growing demand driven by expansion in ports, mining, power, steel, and cement sectors, both within India and across emerging markets globally.
A clear shift toward larger, more complex turnkey projects requiring integrated engineering solutions, advanced automation, and higher safety and sustainability standards is evident. Clients increasingly prioritize energy-efficient systems, dust control solutions, and digital monitoring capabilities to improve operational reliability while reducing environmental impact.
For Indian engineering companies, these developments present valuable opportunities to ascend the value chain by offering comprehensive end-to-end solutions and leveraging global project execution capabilities.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
