|
|
National Manufacturing Policy â need for a cautious approach
|
|
|
|
Top Stories |
|
|
|
|
Bikky Khosla | 01 Nov, 2011
The government announced the nation's first-ever manufacturing policy recently -- the news looks good. It is an undeniable fact that the health of the manufacturing sector, which relies largely on government support, is the key to a healthy economy. This sweaty business can propel economic growth and create million of jobs. Seen from this angle, the National Manufacturing Policy, which I think should have come much earlier, is certainly a welcome development.
The manufacturing policy, as widely reported in the media, aims at increasing sectoral share of manufacturing in GDP to at least 25 percent, creating 100 million jobs in the next 10 years, cutting industry red tape, incentivizing green technology and infrastructure development, and liberalising labour and environment regulations, among many others. All these goals are desirable but ambitious, and if proper planning and efforts are not put on implementing the policy, the whole plan may turn futile in the coming years. The biggest challenge, I think, is the implementation of the policy.
In addition, there are some other important issues. Firstly, the basic benefits under the policy will be available only to a select firms put up in the proposed National Investment and Manufacturing Zones (NIMZs). The rest of the companies, which are not operating from such a zone, will be deprived of the benefits. So, there is a good possibility that only a bunch of specially privileged manufacturers will be created.
Another concern is that the policy has made it easy for companies working from a manufacturing zone to hire and lay off workers. In other words, there would be easing of the existing labour laws. As a result, it will be easier for those units to deal with labour problems, but at the same time this may result in labour exploitation.
The NMP, which has taken two years to be framed, rightly addresses a number of major industry concerns as I have already said. Here I don't want to spread pessimism but just raise the question whether there is scope for further improvement in the policy. I want to emphasise the need for caution to ensure that there remains no scope for corruption, discrimination and labour exploitation while building the nation's manufacturing muscles.
|
|
|
|
|
|
|
industrial policy
Anil | Sat Nov 5 05:28:23 2011
Frankly we have no incentive to small scale industries -- the highest employment generator. Maruti is shifting to Gujrat -- they will give no sales tax, no local tax and many other tax concessions are provided but nobody gives such concession to small units. We have to face sale tax audit, income tax scrutiny even all A/C are audited. Then why they need re audit. Simply time waste and corruption.
Needs to raise levels & standards of products
N.B.LALL | Wed Nov 2 10:50:06 2011
It needs to raise the levels and
standards of the products in line with world and to change the
attitude of the people involved to look for the results of which they
can be proud of. It is high time that the focus of the Indian
manufacturers and the caretaker government officials should be on
world wide consumers. There is no need to haste up the activity to
show off, to gain votes of the masses but to perform for permanent
long-term gains for the next generations to emulate and set an ever
improving quality standards.
Corruption, discrimination and labour exploitation
Arvind Kamath | Wed Nov 2 04:30:37 2011
The manufacturing muscles definitely need to be flexed. However the concerns mentioned in subject are more pertaining to moral character rather than policy discrepancy. Optimism in days of pessimism and sarcasm is the key.
National manufacturing policy
allan_dsouza@rediffmail.com | Wed Nov 2 02:31:53 2011
Timely but what about government support for manufacturers by way of better infrastructure, less tape and more support for raw material prices. And we need better EEC and SEZ and of course instructions to the state governments to assist us and not hinder us for electoral and populist considerations.
If it takes two years for framing the policy, how many years for IMPLEMENTATION
Prof.Sitesh Dutt | Wed Nov 2 00:37:10 2011
The policy is welcome as a first step
even though it has taken too long. Govt. needs to hone their
management skills training their top 'Babus' so that they can manage
EFFICIENTLY in a limited time frame. The key question is: If it takes
two years for framing the policy, how many years for IMPLEMENTATION?
It is depressing to see the lack of managerial skills and
accountability in our Ministers and top officials...witness the
shameful scams tumbling out of the closet every other day. Both major
parties when confronted with the sordid goings-on point their tainted
fingers at each other-"Look what happened when you were in
power" and adopt a "holier than thou"approach. Like in
the U.S you have to leave the job to Business Professionals. Managing
the Economy is like managing a very important business with some
major social objectives. Leave this to the professionally qualified
managers who have the academic credentials and proven integrity,
Being a Maharashtrian I am pained to see the decline in manufacturing
capability in Maharashtra due to inept management and governance..and
scams. I am hopeful that with Prithviraj Chavan we have a
professionally qualified CM who has the capability to do the
job....and do it fast. Maharashtra has to lead in Manufacturing. It
was once preeminent in this area. Let's get it working again.
Remember Gujarat is just north of Maharashtra!
National manufacture policy
bhargava | Wed Nov 2 00:24:16 2011
The government should think more about helping SMEs .
Benefit to only NIMZ firm is not benefit any more . As those SMEs
that invest there whole life investment in there old unit, can't
bring new investment for NIMZ . Because of government poor control on
rupee , we fail to emerge as good exporters like China . Government
like our nation to be global market , so that all over world can sell
the material to our market . Importers imports material on low
invoice and pay very low taxes . Whereas we SMEs pay indirect to
direct tax from all our pocket -- that is the reason we never stand
like China . we threaten by all sale tax , excise , pollution ,
labour , fire fighting government employees...........how we could
survive . Government every year announce thousand of crore for SMEs
but God knows where it goes ....still our industrial areas sewer are
flowing on roads and roads are more over like kacha road . we SMEs
are living in hell. If you want loan , you should be enough rich that
you can pay .......if we are more than asset to invest than why we
need funds for our new ideas. Just because of it we cant take risk.
China policy are good, that is why they emerge like giants all over
world we Indians have brain to win the world , but our government
pull us down. In short government should learn from Chinese
government how to make nation a favorable place for SMEs. Please
bring some topic like this how we fail in international market. Thank
you
NMP - Govt should ensure no corruption
Rohini Suri | Tue Nov 1 15:14:38 2011
Labour Exploitation: 1.Minimum wages
will be paid according to law. 2.Choice is up to labour to join. I do
not think slave labour will be used. So how can there be
exploitation..I would like to ask also 3.Continuity and
disciplined workforce will benefit the family and children of workers
if they stay. This will benefit the country in the long term by
establishing a work culture. 4.Manufacturing muscles are essential
for the well being of our nation. I am sure this will build a healthy
precedence for outside manufacturing units. 5.Exploitation in export
factories can never take place due to the stringent compliance laws
of the importing countries. 5.Re Corruption ..that is up to the law
to ensure govt bodies create a corrupt free zone. We Tax Payers Pay
the Govt Servants they should better ensure there is NO Corruption in
any Form.
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
|
|
Daily Poll |
|
|
Will the new MSME credit assessment model simplify financing? |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|