Indias Manufacturing Sector Policy Framework

Indias Manufacturing Sector Policy FrameworkCHAPTER 1 INTRODUCTIONOn August 15, 2014, Prime Minister NarendraModi, in his initiatory Independence Day speech, reached out to companies around the demesne to Come, Make in India. He further said Sell in any country of the world but military personnelufacture here. We have got dexterity, talent, discipline, and determination to do something.The key features under Make in India Cut red TapismSpurforeign INVESTMENTBetter skill up gradationZero-defect products with Zero- (negative) effect on environmentInnovationEnhance skill developmentProtect intellectual propertyBuilt best in kin infrastructureAccording to MrNarendraModi, we Indians should take FDI as First Develop India and the global investors should consider it as Foreign Direct InvestmentMaking India a manufacturing hubThe brass has identified 25 key sectors in which the country has the potential of becoming world leader some of them these include .chemicals, automobiles, pharma ceuticals, textiles, ports, leather hospitality mining, bio-technology etc etc, .The new government activity has taken up certain initiatives to brace the manufacturing sector in particular, some of which are-Applying for Industrial License and Industrial Entrepreneur Memorandum has been make online e-Biz websiteDe-Licensing has been through on number of Defence itemsIndustrial license validity has been extended to three yearsThe Government has now decided to amend a number of exertion laws in order to provide flexibility in working hours and increase intake of apprentices for job trainingTo simplify the restrictive environment an Advisory has been displace to all departmentswhich includes-filing of all returns in a unified form onlineNo inspection go forth take place without the approval of the Head of the sectionCHAPTER 2POLICIES TAKEN UP BY THE GOVERNMENTMake in India has focused on the development of 25 sectors out of which some are as follows-AUTOMOBILES100% FDI is allo wed through automatic route subject to all the applicable laws and regulations.Imports are exempted from licensing and approvals.Offering rebate on RD expenditure in order to bring forward RD.INFORMATION TECHNOLOGYTo make demarcation easier new measures are helping reduce complexity, accelerate speed and transperancyValidity of Industrial license has been extended up to three yearsMaintenance of the registers by the business has to be replaced with a single electronic registerLEATHERMajor emphasis has been given to skill development through Indian Leather Development ProgramTraining has been imparted to 51,216 youth in the last 100 daysFurther planning has been done to train 1,44,000 youth per annumFor augmentation of training infrastructure, funds have been released for establishment of 4 new branches of Footwear Design and Development Institute in Hyderabad, Patna, Punjab and Gujarat.CONSTRUCTION receive Project taken up by the GovernmentDELHI-MUMBAI INDUSTRIAL CORRIDOR (DMIC)Th e objective of this project is to increase the share in the GDP of the manufacturing sector of our country and to take a crap smart. The plan is to develop cities and residential townships along the Dedicated Railway Freight Corridor (DFC). The aim of the program is to create a world-class infrastructure, good convenient cosmos transport, power management and an efficient water management agreement..Around Twenty four manufacturing cities are engaged in the project. In the first phase of the plan, vii cities have been developed each in the states of Uttar Pradesh, Madhya Pradesh and Gujarat, Haryana, Rajasthan, and two in Maharashtra. These cities go forth provide vast opportunities for the investors internationally and domestically. The initial phase go away be unblemished by 2019.New DMIC Cities will help meet pressure of urbanization and will take India towards economic growth in the next 20 -30 years.The project aims at double employment potential, triple industrial outpu t and exports in the next seven to nine years.KEY SUSTAINABLE DEVELOPMENT CONCEPTS UNDER THE PROJECT-Recycling and utilise of solid waste and water.Use of renewable leading to energy sufficiencyConservation of sensitive natural environment .Transformation of existing villages into smart cities CHAPTER 3 SCHEME ANALYSIS AND RECOMMENDATIONHURDLES ARISING IN THE WAY OF THE SCHEMEThe term extremely progressive for the Make In India campaign would not just help in making india a manufacturing hub but also make economic growth more inclusive. But for the campaign to succeed, hurdles like environmental clearances, infrastructure bottlenecks and unfriendly tax regimes are definitive to be removed in order to create a clear leveled field for the manufacturing in the country. other than these certain other points likeEnergy shortagesSkilled resourcesTrained workersSkilled professionalsLand problemsAmbiguous tax lawsExcessively modify labor lawsHave unplowed a large scale of private inves tors away from investing. The lack of cooperation between the state and the federal governments is another reason as to why investors have scattered faith.A lot of suppliers as well as auto manufacturers face problems in completing paperworks and in the obtaining of business permits required for acquisition of business property. Complicated processes like acquiring of a plant or construction permits has caused various hindrances and then making it more inconvenient for the businessmenThe very complicated irregular network of the domestic tax system that varies from state to state has taken away the ease of operating business in India and are therefore impending investments in India.CORRECTIVE MEASURES TO MAKE THE SCHEME SUCCESSFULFor a long time india was more dependent on the service sector which made it neglect the manufacturing sector to a salient extent. The Make In India strategy is a welcoming move in this context. It will help india gain whim to become the manufacturing powerhouse.This scheme will enhance the employment opportunities.it will provide various employements to the large pool of the young workers who join in the labour ram every year. their employment will generate income which will then increase the purchasing power and the demands on the other hand for the manufactured goodsThe campaign will ensure stronger bilateral ties among the continents and the countries as it highlights global vision. It will mutually benefit the countries in global exchange of the expertise and talents. But in order to grasp this certain changes have to be made and are necessary. They are as underIn order to boost the manufacturing sector of the country through this scheme the supply base of component and the material needs to be improved, acceleration in demand .challenges like provision of skilled manpower , removal of regulatory and procedural formalities , infrastructe development also have to be over powered.A fair and a more sorted out tax system is th e immediate need for the successful implementation of the campaign.It is important to create a business friendly environment where it is important to gain the trust and the confidence of the investorsIt is important to bring labour reforms through skilling, which will bring more efficiency in the manufacturing process as a whole.The right execution of the project is of great importance at the state level itself. states will have to reform the laws even at the lower levels and facilitate implementation of policies and plans taken up by the centre. CHAPTER 4 CONCLUSIONMake in India campaign is a Lions step towards making the country a destination for global manufacturing.Modi Governments push for manufacturing sector in India is a laudable idea especially during the time when a number of big companies are finding an alternative to China due to its increasing embody Manufacturing offers a better way to employ millions of workers , providing a stable source of foreign currency, and cre ate a smooth and a reliable path for development. Manufacturing will enhance countrys macro-economicstability besides creating jobs.. Better infrastructure and easier regulations, especially around labour, will help propel manufacturing,The timing is perfect for India. Labour costs are acclivitous in China Japanese firms are shifting production from China because of military tensions and the rupee has fallen, making Indian workers more competitive.According to what we have researched, we appreciate that it will be a great success as projects like these are needed today and any such step can for certain bring success and development in our economy. The Make in India policy will act as a first reference point on aspects of regulatory and policy issues for the foreign investors and assist them in obtaining regulatory clearances. Now sooner the Competitiveness of manufacturing will now be removed but India will become one of the most competitive manufacturing countries in the world.M r. Modi is working hard towards this project and is dedicated enough to take it through. He has built a certain kind of trust and confidence in peoples mind which can further encourage him to make this project a success.Modi has sought to pullulate a new optimism among the businesses and assured them that the investors will be treated with a lot of trust.India is becoming accustomed to Modis symbolic gestures. He has established himself as a tough politician who expects ministers and bureaucrats to turn up for work on time, and actually take decisions, and keep files moving, so that these policies turns out into action. Clearly a man on a mission to make India work, he also wants to make the world realise its happening.Sitting at his desk in Gujarat, Mr Modi said that when he first took charge of the states economy, I thought the sky is the limit. A similar ambition today would serve India well.