by sunil kapadia with announcement of muchawaited budget for fiscal year 201718 just around the corner many economists and experts have set the bar high with their expectations from the nda government on laying various reforms in manufacturing sector during the nda regime manufacturing has emerged as one of the highfocused sectors in india amid stagnant global trade subdued investment and heightened global uncertainty india continues to be the fastest growing economy in the world emphasis continues to be on promoting manufacturing in india eg make in india startup india skill india etc are steps in that direction while the global growth rate has been projected to 27 per cent by the world bank indias gdp growth picked up from 72 per cent in 201415 to 76 per cent in 201516 even with some deceleration it is still likely to be around 7 per cent after the effect of demonetisation fades while the sudden decline in money supply and a simultaneous increase in bank deposits on account of demonetisation is likely to adversely impact consumption demand in short term it is believed that in the longterm the economy will benefit from the reduction of black money higher tax collections less corruption better business environment reduction in fiscal deficit reduction in interest rates post demonetisation budget 201718 is going to be a litmus test for the government to address the expectations of corporates small and medium industries and common man given the cash crunch in the market the expectations from investors in form of rebates benefits and sops is very high we have summarised few of the expectations from manufacturing sector below accelerating the depreciation while the finance act 2016 restricted accelerated depreciation rate to 40 per cent from april 1 2017 it is important to consider need for continuing accelerated depreciation on certain assets not as an incentive but considering quick obsolescence due to rapidly changing technology further the depreciation available on plant and machinery at the rate of 15 per cent should be increased to 25 per cent which would enable companies to invest in latest technology to manufacture products of international standards and be competitive in global trade restoring incentives on rd expenditure research is the lifeline of any business anywhere in the world in order to promote innovation and create a state of art technology in sectors such as defence manufacturing medical devices manufacturing automobiles etc it would be imperative to extend weighted deduction incentive by another 5 years at same rate also there is need to give similar benefit to renewable solar industries even on technology development deduction on employment of new employees as per existing law the condition for additional deduction for employment of new workmen requires new employees to be employed for atleast 240 days in the previous year being the first year of employment this leads to a situation wherein an employee if hired on october 1 will not be able to claim additional deduction even though such employee may continue to be