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Last updated: 27 Sep, 2014  

Manufacturing.9..Thmb.jpg National Manufacturing Policy – need for a cautious approach

Manufacturing.9.jpg
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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. 
 
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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.



 
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