Jacob Jose, CEO and Managing Director, Methods India, believes targeted incentives can strengthen India’s domestic manufacturing ecosystem. Jose says 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. In an interview with Mint, Jose shared the industry’s budget expectations and key trends and opportunities in the bulk material handling systems market. Edited excerpts:

What key policy or fiscal announcements in the upcoming Union Budget can support capital goods and engineering-led industries?

India’s infrastructure momentum needs to be matched with consistent policy support for the capital goods and engineering ecosystem that enables execution on the ground.

From our perspective, faster project clearances, predictable capital expenditure outlays, and continued focus on ports, power, mining, and logistics infrastructure will be critical.

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.

Equally important is ensuring timely payments across public sector projects, which directly impacts cash flows and execution efficiency in large turnkey contracts.

Do you believe targeted incentives for domestic manufacturing of capital equipment and industrial machinery could strengthen India’s supply chain and reduce import dependence?

Yes, targeted incentives can play a meaningful role in strengthening India’s domestic manufacturing ecosystem.

Capital equipment manufacturing is highly engineering-intensive and requires long-term investment in fabrication capabilities, technology, and skilled manpower.

Incentives linked to capacity creation, technology upgradation, and localisation of critical components would encourage companies to invest deeper within India.

Rather than broad subsidies, focused support through production-linked incentives, accelerated depreciation on plant and machinery, and R&D incentives could help build globally competitive capabilities while reducing dependence on imports over time.

For export-oriented engineering companies, what measures could the Budget consider to improve global competitiveness?

Export-oriented engineering companies operate in highly competitive global markets where margins are often determined by logistics efficiency and access to financing.

Reducing logistics costs through better port infrastructure, faster customs processing, and multimodal connectivity would significantly improve competitiveness.

On financing, easier access to export credit, longer-tenure financing for overseas projects, and support for performance guarantees would help Indian companies bid more confidently for large international contracts.

Additionally, diplomatic and institutional support for Indian engineering firms executing projects overseas can help mitigate execution and geopolitical risks.

Overall, what would define a successful Union Budget 2026 for India’s capital goods, manufacturing, and infrastructure ecosystem?

A successful Union Budget would reinforce continuity—maintaining momentum in infrastructure spending while strengthening the industrial backbone that supports it.

For the capital goods and manufacturing sector, clarity on long-term capex priorities, policy stability, and support for domestic value creation would be key markers of success.

The Budget should also recognise the 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.

What are the key trends and opportunities in the bulk material handling systems market?

The bulk material handling sector is seeing growing demand driven by expansion in ports, mining, power, steel, and cement, both in India and emerging markets.

There is a clear shift toward larger, more complex turnkey projects that require integrated engineering, automation, and higher safety and sustainability standards.

Clients are increasingly looking for energy-efficient systems, dust control solutions, and digital monitoring to improve reliability and reduce environmental impact.

For Indian engineering companies, this presents opportunities to move up the value chain by offering 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.