Increase manufacturing post covid19
low manufacturing has always been India’s problem. But today it has become a serious problem. It is believed that manufacturing growth can help us to a great extent in stopping poverty and unemployment which are increasing day by day in our country. As the whole world has become a global supply chain and China become a manufacturing base, therefore, it has become a necessity to promote make in india and local manufacturing after the covid19 outbreak.
competition is increasing to lure investment to increase their manufacturing
Many countries are looking to relocate their business from China. Which has given India an opportunity to increase its manufacturing and to get rid of many of its problems, But this is not going
to be easy because India is not alone in this race. And many countries want to take advantage of the opportunity to promote investment in their country and want to increase their growth. If India wants to take advantage of the opportunity then it will have to take many such small steps, which succeed in India in this task.
Problems faced by businesses in India
It has often been seen that business has to face a lot of problems in India regarding land, labor, and regulations. If there are some fundamental improvements in land labor and regulation, this journey can be quite easy.
Land – Most governments acquire land after the Memorandum of Understanding, which causes a lot of business risk. It will help a lot if land pools are made and manufacturing areas are made once in
advance.
Labour – India is a country of young people in which about 70% of people are young. But the problem is that they are not skilled. The workers here are cheap and unorganized. If we can organize and skilled the laborers then no one can stop the success of Make in India.
Regulations – It is not that our rules are very strict. But our rules waste a lot of time which makes business non-competitive. We have to move our policy from business regulation to business facilitation.
Along with this, there are some other small & big steps which are very important to Make in India. Such as single tax GST, dedicated road & rail network, logistics, warehousing, quick & Smooth port
operations.
policy uncertainty
It is often seen that the policy is changed as soon as the government changes, which is not acceptable to the manufacturer. Along with this, retrospective taxation is also a big issue which troubles investors.
Adjudication
We have to make some reforms in our justice system too. So that we can adjudicate the cases of international arbitration quickly and smoothly.
Stakeholder in Global Supply Chain
We often charge a higher import duty to protect our domestic market. Because of which we have never been able to become a stakeholder in the global supply chain. So we should give some thought to removing our concern and also cutting into custom duty. That we become intermediaries in the global supply chain.
We ourselves are very much dependent on China in energy, consumer durable, automobile & pharmaceutical sector. So increasing domestic manufacturing has become our need.
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