Ficci suggests 12-point action plan to boost manufacturing sector
New Delhi: Industry body Ficci has suggested a 12-point action plan to stimulate growth and create jobs in the country's manufacturing sector by outlining measures aimed at building an enabling policy framework to attract investments.
Some of the measures suggested include issuance of rupee bonds to NRIs, reducing the threshold for minimum investments, avoiding retrospective amendments in tax laws, adoption of a consultative approach in designing tax policies, establishing coal linkages and strengthening of power distribution network.
"The threshold for minimum investments needs to be reduced from Rs 100 crore to Rs 10 crore to encourage investments by smaller investors. Further, the period for which the (investment) allowance is available should be increased from two years to five years," according to Ficci's Manufacturing Mandate.
Besides, the recommendations call for expediting investigations into instances of dumping, according 'priority sector' status to manufacturing for securing adequate power supply, developing integrated solar manufacturing hubs and ask the government to have a relook at the Land Bill.
"The Land Bill in its current form needs a relook if the Government is serious about not just supporting manufacturing as it rules out acquisition of land by manufacturing industry," Ficci said.
The suggested measures also include creation of an enabling policy framework to attract skilled, semi-skilled or unskilled workers, affordable housing for industrial workers, accelerating development of Amritsar-Delhi-Kolkata Industrial corridor and expediting implementation of National Investment and Manufacturing Zones (NIMZs).
Moreover, the 12-point manufacturing mandate exhorts the government to devise a roadmap for streamlining and cutting existing rules and procedures for manufacturing sector.
It suggests setting up of a single quasi-judicial regulatory authority for dispute resolution to enable faster rollout of infrastructure projects.
Ficci also called upon the government to review existing Free Trade Agreements and empower MSMEs (micro, small and medium enterprises) to enhance their contribution to exports.
"The current government procurement policy of MSME Ministry provides for mandatory sourcing of minimum 20 per cent by government departments from both manufacturing and services MSMEs. This should be changed to mandatory sourcing of at leats 20 per cent for MSME in manufacturing in addition to sourcing from service sector MSME," the industry body said.
The Manufacturing Mandate recommends adoption of a 'Look Within' approach by the Ministry of Defence towards defence procurement to enhance indigenisation in defence production and give a boost to domestic manufacturing.
India's manufacturing sector, with a size of USD 250 billion, has a share of 15.3 per cent in the GDP. It employs around 48.5 million people and for 11 per cent of the total employment in the country. The National Manufacturing Policy targets creation of 100 million additional jobs in the manufacturing sector by 2025.