A step in the right direction

June 30, 2016 12:59 pm

  The costs associated with manufacturing in India are very much on the lower side as compared to countries in Europe and Americas where most of the global investors have their bases.Keshav Khurana, Executive Director – India & ASEAN, Wohlhaupter India Pvt Ltd
The “Make in India” initiative is a great positive step to boost the Indian manufacturing sector. Foreign companies have started working towards this and the regular announcements by new and already existing MNCs show the quick outcome of this initiative.
There are 4 major policies by government under the “Make in India” program:New initiatives: This initiative is to improve the ease of doing business in India, which includes increasing the speed with which protocols are met with, and increasing transparency. Here’s what the government has already rolled out:• Environment clearances can be sought online.• All income tax returns can be filed online.• Validity of industrial license is extended to three years.• Paper registers are replaced by electronic registers by businessmen.
Foreign Direct Investment (FDI): The government has allowed 100 per cent FDI in all the sectors except space (74 per cent), defence (49 per cent) and news media (26 per cent). FDI limit in defence sector has been raised from the earlier 26 per cent to 49 per cent currently.
Intellectual property facts: The government has decided to improve and protect the intellectual property rights of innovators and creators by upgrading infrastructure, and using state-of-the-art technology.
National manufacturing:• To increase manufacturing sector growth to 12-14 per cent per annum over the medium term.• To increase the share of manufacturing in the country’s Gross Domestic Product from 16 per cent to 25 per cent by 2022.• To create 100 million additional jobs by 2022 in manufacturing sector.
Opportunities for Indian manufacturersIn today’s world all information is quickly available, foreign companies can easily find information about Indian manufacturers. The Indian manufacturers can plan lucrative offers for these foreign companies and start manufacturing in collaboration with them. The Government of India’s ambitious initiative, which aims to transform the country from being Asia’s third-largest economy into a global manufacturing powerhouse, “Make in India” completed one year in September 2015. The initiative has set an ambitious goal of creating 100 million additional jobs in the manufacturing sector by 2022 and increasing the share of manufacturing in the country’s Gross Domestic Product (GDP) to 25 per cent from 16 per cent. Since the launch of the initiative, overall Foreign Direct Investment (FDI) has increased by 39 per cent.
Investment allowance: The Government of India in its Union Budget 2014-15, has provided investment allowance at the rate of 15 per cent to a manufacturing company that invests more than $ 4.17 million in any year in new plant and machinery.
Skill India: A multi-skill development programme has been initiated with a mission for job creation and entrepreneurship for all socio-economic classes. Cross border sharing information-Countries all over the world have signed Mutual Legal Assistance Treaties (MLATs) to establish cross border cooperation. MLATs are considered very important tools for law enforcement agencies, governments and the private sector, since they act as formal mechanisms for access to data which falls under different jurisdictions.

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