Policy steps to shape India into global manufacturing hub

Structural troubles like the price of land and power, loss of good enough infrastructure, and shortage of skilled manpower ought to play the spoilsport if now not addressed on time, states industry.

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Policy steps to shape India into global manufacturing hub

Disruption in the international delivery chain has spread out opportunities for massive-scale manufacturing in India, aided by big policy projects along with manufacturing-connected-incentive (PLI) schemes and low corporate tax rates for new production, amongst others.

Structural troubles like the price of land and power, loss of good enough infrastructure, and shortage of skilled manpower ought to play the spoilsport if now not addressed on time, states industry.

Also Read: India is On Track to Emerge as The Top EV Manufacturing Hub

“MNCs that manage supply networks have acknowledged the necessity to hedge against future events and have decided to geographically disperse their supply chains. As a result, India has reaped significant benefits,” Amitabh Kant who is the CEO of NITI Aayog stated.

The government has unveiled a $27 billion certainly worth of PLI scheme for thirteen sectors to help integrate Indian groups into the global fee chains and faucet into the opportunity. The PM Gati Shakti national master Plan (NMP) which brings together 16 ministries to allow incorporated making plans and coordinated implementation of infrastructural connectivity, is expected to decrease logistics fees extensively. The corporate tax price for brand spanking new production has been decreased to fifteen%.

“There couldn’t have been a better time for the government to announce various schemes which will act as enablers to create a viable eco-system for companies to invest in advanced technologies in India,” Rajesh Menon who is the director-general of the Society of Indian Automobile Manufacturers stated. “Auto industry in India is also poised to become a major player in the global supply chain and these schemes would provide the necessary impetus in this regard,” Menon further added.

Vikram Kirloskar who is the chairman (manufacturing council) of the Confederation of Indian Industry, feels it is now time for the industry to step up. “Government measures can give you added incentive but it is upon manufacturers to improve upon scale and quality.”

The government and businesses witness the opportunity but understand the need for enhancement in the enabling framework. “In the medium term to long term, India will have to address its structural issues,” Kant stated. In the short term, he believes it is extremely crucial to improve the ease of doing business in manufacturing.

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Policy steps to shape India into global manufacturing hub
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Structural troubles like the price of land and power, loss of good enough infrastructure, and shortage of skilled manpower ought to play the spoilsport if now not addressed on time, states industry.
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THE POLICY TIMES
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