India is definitely capable to take a big leap. However, good governance is very important for moving India on a growth trajectory
ZIEHL-ABEGG INDIA Private Limited started its operations in India in 2008, with an objective of satisfying the unfulfilled needs of the Indian customers who were looking for highly energy efficient and reliable fans and controllers. “India is a country that is sitting on the fence, and all it needs is to take a jump is one direction – growth,” believes Vikas Kundra and shares his insight on India’s capability to take a big leap in manufacturing world.
Pro-business environment neededIndia is having huge manpower, natural resources, potential market, technical strength, drive and desire to produce world class products. Indian government has a major role in making India a global manufacturing hub. A case in point is IT sector in India which has proved itself on international stage. India has all the ability to replicate the same success in manufacturing sector as well, provided the business environment is conducive for growth.
Policy makers need to review and come out with growth oriented policies, making business friendly procedures by changing to a single window approach. More than incentives and tax breaks it is the pro-business environment that can help convert India into a global manufacturing hub.
Moving factorsIndia is definitely capable to take a big leap. However, good governance is very important for moving India on a growth trajectory. The need of the hour is clear policies, simplified tax structures, good roads, availability of power and water, single window approach for setting up businesses, eliminating red-tapism and quick decision making. With these factors falling into place, India will be able to give the right message to the world that it is ready to earn its rightful place across the globe.
Pull back factorsThere are various pull back factors like inability to take timely and right decisions by the government on laws such as labour laws, no clarity on land acquisition act, unavailability of 24/7/365 power supply and water, poor infrastructure like roads, sea ports, airports, to name a few.
Complex tax laws need reformation so that it encourages everyone to pay taxes rather than think of ways to avoid them. Extensive paperwork with government body needs to be simplified wherein we should utilise our strength on IT to make it simpler, faster, better and without corruption.
Also as our education system is more focused on theory than practical, it constantly turns into the lack of employable graduates which should find a solution.
Support system form new govt.Manufacturing sector of course expects the new government to address many issues and thereby to create a good support system. Some major issues are: • Building a world-class infrastructure all across the country and providing electricity and water without fail• Harnessing IT strength to provide an easy to implement interaction with the government bodies for setting up new businesses/ expansions, tax payments, annual reporting etc.• Implementing the new tax laws, like GST, to make taxation a simple process thereby eliminating tax avoidance and corruption• Reforms on labour laws and land acquisition laws• Reformation on education system is required as ours is a theoretical knowledge based system, whereas more hands on approach with practical knowledge is needed.
Vikas Kundra, MD, ZIEHL-ABEGG INDIA Private Limited
