|
|
Manufacturing matters
|
|
|
|
| Top Stories |
 |
|
|
|
Bikky Khosla | 19 Aug, 2014
Can India become a manufacturing powerhouse? In his maiden Independence Day speech, PM Narendra Modi highlighted the urgency to revive Indian manufacturing. "Come and make in India," he exhorted the world, and stressed on channelizing the strength of the youth through manufacturing. The address, which is one of the best I have watched, undoubtedly sounds encouraging. In recent years, the state of the Indian manufacturing industry went from bad to worse. Last year, the sector contracted 0.7 percent, the first time since 1991-92. This situation certainly demands urgent attention. The government must act to bring in reforms.
Investor sentiment has improved considerably since the new government took office. Some recent measures introduced by it -- including further opening up of some sectors for foreign investment and those introduced in the Budget such as incentives for manufacturers -- can certainly be viewed as welcome steps, particularly considering that the government has been there only for two months, but at the same time it is clear as crystal that it will never be possible for us to make manufacturing the main engine of the economy without prolonged commitment. Reforms must begin now, continue for many years to come, and all challenges facing the sector in terms of labour law, taxation, land acquisition and ease of doing business must be addressed.
The economies of India and China were almost similar during the 1980s, but China overtook us by choosing a manufacturing-led growth model. In contrast, India's focus remained heavily on services. For over a long period, our manufacturing-GDP ratio has been around 15-16 percent, contributing only around 1.8 percent to world manufacturing. In contrast, China's manufacturing sector contributes over 30 percent to the GDP and is around 13 percent of world manufacturing, up from 2.9 percent in 1991. During the recent years, however, the advantage of Chinese manufacturers has fast slipped, primarily due to rising labour wages, and we must take advantage of this, and to start with, we must have well-directed industrial policies to promote the sector.
When it comes to manufacturing exports, we are lagging miserably. A major part of our manufacturing export basket is constituted by products from some labor-intensive sectors like textiles and gems and jewelry, and if we want to end our dependency on imports, we must focus on manufacturing-led exports. In addition, as the Indian MSME sector accounts for around 45 percent of the manufacturing output and around 36 percent of total value of exports, this sector must be promoted to explore its full potential both in terms of manufacturing as well as exports. I hope the MSME committee to be set up as proposed in the Budget and the forthcoming FTP would bring some relief to the sector.
I invite your opinions. What do you think the government should do to take the manufacturing sector to the next level?
|
|
|
| |
|
|
|
|
|
|
|
foriegn pattern of education renders joblessness
Prasannjit Prasad JainGoyal | Wed Aug 27 09:37:57 2014
From the very child hood children do not learn any lesson which could be of interest to them. They do not get by heart
poems or verses which cuold indicate how a
life could be HEALTHY WEALTHY & WISE.
One can be happy with a sound mind which lives in a sound body and this only could
help in eaning money. Urban Development Authorities are authorized to grab land from poor people and allot them back pegeaon holes at exhorbitant rates, leaving no space for growing vegetables for self consumption, rendering them to purchase vegetables at Re.40-80 per Kg. How can the government expect that their kids would grow very healthy and productive. The M.B.A.s sitting in A/c chambers have ruined the world economy since they have not been taught the Ancient Indian Economy formula to make every village or city self sufficient in itself. Doctors are not being taught how to grow Tulsi plants in their houses,and how to use it regularly to make their family life happier, it has been found that they themselves often die of heart attacks. MCI bans people opting a home remedy consultant's profession, and Govt. restricts small scale mfg. and growing of herbal products by imposing unrealistic laws. Unnatural desi ghee brands are given clean chit while milk producers and kissans are given loan on interest. Market is not left to grow on principles of 'survival of the fittest, where the purity and quality products would survive. Several unproductive govt.posts
and national losses are not considered
Atul Sharma (09414042150) | Wed Aug 27 08:04:28 2014
Why is be Excise Duty levied at the first place. Unnecessary expense on department, paper work, audit etc. are involved due to which the manufacturing units fear to cross the limit for Exciseable production. If Excise is for making revenue to the government then let the government be satisfied as per current practices and FORGET ABOUT QUALITY MANUFACTURING BOOM at competitive prices globally. If comparing with China, survey the Chinese ruling over manufacturing units as regards to their government levies on production.
Trust Indian Ability
Peter Mann | Fri Aug 22 11:24:24 2014
Encourage local product development by granting tax concession for companies that invest in research & development.
Quality and reliability are long-time big weakness in Chinese products. Easy to take advantage of this complacency.
Good reputation for quality takes time to build, but it is a strong positive in the mind of many buyers. Japanese refinement of product and manufacturing sets a good example, offers a safe choice for buyer.
China Vs. India
Dilbir Sethi | Fri Aug 22 08:08:39 2014
Residing all our life abroad we see the difference between China and India.
If you are looking for any product and contact Chinese suppliers we are assured that we are going to get reply same day without fail but unfortunately Indian exporters are so slow that they take one week time to reply to your e.mail.
Can we change this attitude??
Govt policies should be strict & manufacturing sector friendly
Varun | Thu Aug 21 07:56:59 2014
All People & Govt. knows the Basic Ground reality, but no-body wish to overcome on the same front .. ( Hope this time govt. will do something positive and soon ) We are here in manufacturing sector but our product manufacturing cost are too high as compared too Chinese, thats why we have to bound now for only trading, and the reason behind these are like : 1) Main Overhead cost in manufacturing like Electricity / Land price are too much higher in india compare to China for manufacturing sector .. So cost is higher. 2) Govt. gives good subsidy there for manufacturing companies, also who export material. Nothing here to promote. 3) Mostly all importer / exporter use all tricks for saving tax / excise duty on items, .... due to that other countries easily able to export in low price, and so there manufc. sector is growing and we remain on opposite side. ... 4) Our taxes are so high / in-practical, that no-body really wish to pay it willingly. And due to paying those so much taxes, our basic cost increased so much, that our manufacturing cost can't match up their cost. 5) Who doesn't know, about the bribe / harassment system in each offices from higher to road level, which never allow one to work genuinely or effectively. which indirectly harmful for country and every citizen too. its only govt. to work strictly and effectively on basics and made an easy way to function, so one could encourage and feel good to work for nation.
YOUTH STRENGTH
Himanshu Sharma | Thu Aug 21 07:16:07 2014
Me and my friends have been trying to start our own manufacturing unit for a long time. And in our journey we came across some really odd rule and regulations in the SME Financing sector. So, If Youth power is to be yielded, empower them with clean, clear, hassle free and real supporting system. Indian youth is educated, intelligent and enthusiastic; but bureaucracy, corruption and attitude force them to settle for a job till they are self sufficient.
Exports of plastics
atul gupta 99922221101 | Thu Aug 21 05:19:29 2014
A point I want to make. I see a huge potential in exports of plastic products to the world. And this sector is marred by virtual monopoly of one company. Prices of plastic raw materials are artificially high in India. Even international players quote a higher price for Indian market as compared to even other South Asian Countries. As a result, we are not able to tap the potential India has.
I would like you to take up this issue in your future issues.
Increase export from MSMEs
Narasimhan | Thu Aug 21 03:34:14 2014
Export is the key to increase money value and thus can reduce fuel and other prices.
There are MSME companies doing export,but cannot spend more to increase export.Government should organize trade shows in various countries,choose MSME already in export and sponsor for them to participate in those shows and thereby help to get more export orders.Can form a team and fix a target to increase the export value
Corruption Free Bhrat
Snehal Jethwa | Wed Aug 20 19:39:20 2014
Hi,
Just to inform you all that to get SSI registration agent is asking Rs.6,000.00 with an assurance that he will give the certificate within 2 days.
Imagine just to start the new unit how much individual has to shell out.
If government can implement strict rule then many youngsters will come forward into manufacturing.
Importance of ENGINEERING Education
Prof Virendra Grover | Wed Aug 20 16:01:01 2014
Govt can only give direction and contribute through policy directives. Engineering institutions have a significant role in creating awareness of MANUFACTURING.
Quality the key
Ronald Webb | Wed Aug 20 15:29:00 2014
Training and building plants to produce QUALITY PRODUCTS. you see China was known for shoddy work and as a result no one would purchase their products because they would break fall apart or quit working. You must immediately overcome that obstacle by means of quality produced material with quality produce products building a brand reputation for having good products from the very start.
India needs own shipping cos to bring down costs
wjohn | Wed Aug 20 14:34:48 2014
I am very happy with the products I have found to import from India to US. But US shipping companies (fedex) are so expensive. India needs to have it's own shipping companies. Shipping costs have doubled the price of my imported goods.
Manufacturing
Herman Claassens | Wed Aug 20 11:03:33 2014
I'm an Australian who has set-up with our Indian partners a company to manufacture and trade commodities from India. Our biggest issues are the non compliance in quality issues , regulations control, time lines. We can see the country has great resources and with government assistance we can develop this industry in leaps and bounds. Hence we are putting our resources and time and effort in your country, but we need to create a credibility in International markets for this to happen.
By being consistent and delivering the products as promised will this attitude change and more business will be achieved from our international customers. With huge food spoilage trough bad business models just changing this will bring more wealth to the country and its wonderful people.
A laissez faire view
G.C.Gupta | Wed Aug 20 10:13:10 2014
What Govt. should do can be summed up in just one word which is 'NOTHING'. The Govt. should not do anything in the industrial fields but leave everything to the entrepreneurs.
It is time that the Govt. should only act as a Facilitator and not as a Controller.
All the Relics of the idiotic Fabion Socialism like the 'Bhawans' on both side of the Rajpath in New Delhi and all such other non-productive Govt. Departments should be abolished. We have suffered for a long time from the 'Too much Government but too little Governance' Syndrome and time has come to correct it.
Motivation to Develop Manufacturing Sector.
Dr Mrs Sushma Joiya Pandit | Wed Aug 20 09:29:37 2014
Every Citizen of India must be thankful to Shri Narendra Modi ji for motivating the development of Manufacturing Sector. Entrepreneurship is the backbone of Development. Manufacturing will give employment to many unemployed persons.
We can reduce the cost of many things by developing the manufacturing sector. The more is the manufacturing the more items will be available in the market.There are many countries where we can export the manufactured items thus will generate foreign exchange.In case if the manufacturing sector will observe some problem or hurdle the Prime Minister could be approached and naturally he will redress the problem. If we take the manufacturing units in Rural areas, we will be helping the villagers to join us and work for Nation Building.
Planned infrastructure
Sivaraj.D | Wed Aug 20 08:22:30 2014
Fine to all...yes we need the next level in manufacturing with fast and very planned infrastructure to support the all businesses people in India base company and people those are interest to grow with INDIA. We need basic infrastructure and local approvals to be very essayist way require and very minimise time to start the units in future. Education about the manufacturing the product knowledge is also to be important to the people to avoid loss in time and our power in all aspects..
thank u
sivaraj
Ease of doing business must be first priority
R. Krishnan | Wed Aug 20 07:05:58 2014
Ease of doing business must be the first priority of the Government. Today, all the statutes for doing business in India appear to be designed to promote inefficiency, corruption and inordinate delays. The processes are opaque and not at all amenable even for a seasoned entrepreneur and the plight of a novice entrepreneur is unenviable. Many feel discouraged at this paradigm and opt out for a safe and secure low aiming low performing job. This has something to do with the mindset of all our officials. As PM said in his Independence day speech, 'What is in it for me?' and 'What will I get?'is the driving force for many of them. Unless 'Public Service mindset' and sense of Duty prevails, things will not improve.
Youth power
Vilas Bhamare | Wed Aug 20 06:36:57 2014
"Come and make in India," Our prime minister Mr.Modi exhorted the world, and stressed on channelizing the strength of the youth through manufacturing.
Yes we have a 65 percentage of Youth India & they can build the nation only need to them is a Good government Like to Modi Government i think this Government can do something better that we can't see before.
What Indian exporters' lack -- an importer's reaction from Lagos
Nabil Sleiman | Wed Aug 20 06:25:32 2014
My previous experience when we imported from India is
1. Exporters do not keep after the first few orders, to the agreed quality and delivery deadlines.
2. Will move away from a client the moment they find more profitable alternatives. We were importing plywood from apparently a good manufacturer who dropped us the moment his home market became more profitable
3. Equipment from India do not meet top standards which they boast about.
4. We had major delay problems getting Indian banks to pass our LCs across the beneficiaries.
5. It seems that all those we tried to deal with were not interested to provide export credits backed by India export credit guarantee.
6. The Indian High Commission in Lagos does not have a vibrant trade and advisory section
Three ways to promote manufacturing
L | Wed Aug 20 06:02:35 2014
Government should abolish the non- value adding norms which are presented by the unions,which are a stone in the shoe of manufacturing sectors. Secondly, very strict rules should be laid for quality of Indian goods. Legal action (non corrupted) should be taken for rule breakers.I feel many of the China made products excel in these three factors, due to which they capture the market.
Excise for smaller units
BK Nagpal | Tue Aug 19 22:39:13 2014
Please note in the present situation the excise duty should be levied after the sale of Rs. 5 crore.
Fuel price and value of currency
Tehzeeb | Tue Aug 19 20:36:47 2014
Decrease in the price of diesel and the value of money should be increased.�
|
|
|
|
|
|
|
| |
| 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 |
|
|
|
|
|
|
| |
|
