Centre, states must create favourable ecosystem for manufacturing: Report

Mumbai: The Centre and states need to create an appropriate ecosystem and provide sops to businesses in order to develop a robust manufacturing base in the country, says a survey.

According to a joint survey by CII-BCG, the successful development of manufacturing base requires governments to create appropriate ecosystem, offer incentives and ensure ease of doing business.

"In a federal state like India, both the Central and the state governments need to play their part in supporting the industry on these factors," it said.

It noted that even under a common federal framework, different states have had widely varying levels of success in terms of manufacturing growth and the ability to attract investments.

The government has set an ambitious target of creating 100 million jobs and achieving 25 per cent of the total GDP from the manufacturing sector by 2022.

"While the Centre has the primary responsibility on the overall policy framework, taxation and country-level branding, the states have an equally important role in ensuring the effective translation of the government's intent on the ground," the study added.

It further said that the Constitution gives states the authority to legislate on a number of subjects including labour, land acquisition, education and skill development.

"Further, the state governments can be proactive in offering incentives, procedural debottlenecking and other execution support to attract investments in manufacturing industries. Also, political will, backed by some of these levers has proven effective in changing the development trajectory and the creation of new manufacturing hubs," the survey said.