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‘Make in India’ for ‘Made in India’: Path Breaking Vision to Create a Vibrant Manufacturing Hub and Generate Employment

Aug 20, 2014   18:30 IST 
India
ASSOCHAM welcomes the Hon’ble PM’s vision to make India a vibrant global manufacturing hub by inviting the world to ‘Make in India’ and harness the power of India’s youth in the manufacturing sector to make ‘Made in India’ synonymous with ‘quality’ and ‘zero defect’ products. The manufacturing sector has the potential to create 100 million jobs by 2025 and play a transformational role in India’s economic revival. ASSOCHAM highlights the urgent need to position India as an attractive investment destination through transparent and efficient regulatory and administrative frameworks.
 
Manufacturing activities in India contracted by 0.7% in 2013-14, for the first time since the economic slowdown of 1991-92. Reviving this sector will be critical to address low employment creation, inadequate financial inclusion, slow economic growth and high trade deficit. For the sector to achieve its target of contributing 25% to the national GDP by 2025, it is critical that domestic value addition be enhanced in strategic sectors which are job multipliers with high growth potential such as Housing & Construction, Tourism, Healthcare, Core Infrastructure as well as Agribusiness and MSME segments.
 
ASSOCHAM firmly believes that manufacturing forms the backbone of economic development and proposes the following recommendations, vital for strengthening Industry:
 
Encourage IT & Telecom manufacturing: Currently, India exports USD 70 bn worth of software and services, and imports USD 50 bn worth of IT hardware. As the import bills on IT hardware are expected to reach USD 200 bn by 2020, there is an immediate need to setup semiconductor wafer fabrication manufacturing facilities in India which will facilitate production of electronic chips, which are currently being imported in significant numbers. A necessary boost to production of telecom products will have a multiplier effect on the manufacturing sector
 
Build a robust Defense Industrial Base (DIB): According to the recent data released by Stockholm International Peace Research Institute (SIPRI) on international arms transfers, the volume of Indian imports of major weapons rose by 111% between 2004-08 and 2009-13, and its share of the volume of international arms imports increased from 7% to 14%. It is, therefore, essential to collaborate with other countries to encourage manufacturing in India to facilitate transfer of technology and strengthen the indigenous defense industry
 
Redefine policies and norms: India ranks 4th amongst most favored destinations for investment and 14th among top 20 global economies, having received maximum FDIin 2013. To stimulate growth in the manufacturing industry, it is essential to design investor-friendly policy frameworks and ease FDI norms in vital sectors.
 
To enhance competitiveness of our manufacturing sector, ASSOCHAM strongly advocates a new paradigm shift by increasing availability of skilled manpower and creating an enabling environment for attracting investments as well as addressing issues related with taxation, labour and land reforms, faster approvals and trade policy to revive the manufacturing sector. 
 
Sincerely,
 
Rana Kapoor
 
President, ASSOCHAM

 


 
 
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