Allowances for mfg sector must, urges PHD Chamber

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SME Times News Bureau | 21 Jul, 2012
On the backdrop of India's present economic scenario and the need for a robust manufacturing policy, PHD Chamber of Commerce and Industry (PHDCCI) Friday organized a seminar on "National Manufacturing Policy: Way forward for realising the Goal".

Welcoming the Chief Guest of the occasion, MoS Commerce & Industry, Govt of India, Jyotiraditya Madhavrao Scindia, the President of PHDCCI urged the government to bring in Investment Allowances and Financial Packages for the manufacturing sector.

Sandip Somany said, "Supply is not keeping pace with demand in India, which has resulted in ever-increasing imports into the country from China and Taiwan. Local manufacturers are unable to match the competitive prices of imported finished goods due to these challenges. Against this backdrop of the country's urgent needs and expectations, the new National Manufacturing Policy (NMP) is a welcome step and its implementation is the need of the hour. However, it requires the need of involving government, industry and all stakeholder organizations together to discuss the persistent failure of India's manufacturing sector."

Deliberating on the New Manufacturing Policy, Jyotiraditya Madhavrao Scindia reiterated that the new policy aims to create 100 million jobs and increase the share of manufacturing in India's GDP to 25 percent by 2022, from the present 16 percent.

Scindia further added that the policy would cluster and aggregate separately the National Investment and Manufacturing Zones (NMIZs). The NMIZs for which the Dept of Industry Policy and Promotion would be the nodal body, would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services. Mentioning about the institutional framework, he said that a high powered committee constituted by the GoI would scrutinize applications for setting up the NMIZ, and subsequently monitor and expedite the progress of implementation.

To ease the burden of payment to labour at the time of the closure of unit, a Job Loss Policy has also been conceived for the proposed NMIZs. This could help ease the pressure on the manufacturing entity considerably.

He further said that the policy would also promote investments in the manufacturing sector and help in making the country a hub for both domestic and international markets.

Stressing on global competitiveness of the manufacturing sector and build its technological "depth", Scindia circled out that the new policy would ensure creation of appropriate skill sets among the rural migrant and urban poor for inclusive growth. Financial and institutional mechanisms would be implemented for technological development and rationalization and simplification of business regulations would be ensured, said Scindia.

Speaking on the challenges faced by the manufacturing sector of India, Member Secretary NMCC, Ajay Shankar opined that in order to push the sector up on the growth graph, we need to work towards accessibility to affordable land and adequate capital.