Review and revamp

By admin June 26, 2014 6:03 am IST

A review and revamp of some sticky current issues is needed
 Being one of the global leaders in the manufacture of cranes and components, Demag supplies solutions for all types of material flow, logistics and industrial drive applications with its industrial cranes. Manojit Acharya shares his views on constructing India as one of the leaders in manufacturing sector on global stage.
Capable enoughIndia has a large coastline, educated workforce, economical labour, potential education system, improving power scenario and an ability to produce good quality products that are acceptable to global customers. Thus India is definitely capable enough to become a manufacturing hub.  In early 90’s it is seen that when offered a opportunity and the right investment climate, manufacturing companies have flocked to India to set up base initially to address domestic demand and later to export to other markets.
A review and revamp of some sticky current issues is needed including certain land acquisition policies. Interaction between departments is required to clear large projects on priority. There is also a need to have specific skill development in certain trades to provide a reasonably trained workforce. Creating a favourable investment climate through confidence is necessary and India has the right climate for it. However, this is not a magic wand process. Global demands have shrunk in the past few years and it will take a few more years to bounce back.
Important factors for growthSome factors are really important when it comes to the growth of Indian manufacturing. One of these is ability of Indian manufacturing sector to deliver good quality products which will be acceptable in the global markets. Availability of skilled and educated workforce would be another advantage. Reliable power supply and a well-developed internal infrastructure for providing easy access to the ports are also major factors in the process.

Exhausting hurdlesRed tapism tires a lot. One still has to approach various departments in every state to set up a new unit, further there are multiple agencies that are involved in inspection and clearance. Multiple taxation system of goods is another hurdle. Now there is need to implement GST to make Indian industry competitive to some extent. Ideally there should be a single window to provide all clearances for setting up a unit. Next statutory registrations could be linked to one another, e.g. generate a company identification number after certain basic rules are met, and generate TAN, PAN, TIN, service tax registration etc. based on that and linked to it.
Govt in pictureThere are lot of steps that govt is expected to take to encourage current manufacturing picture. Govt should review the power policy and aid implementation of pending power projects to ensure that projects on hold are able to progress. Next it should review the GST policy and roll it out earliest, followed by reviewing the amendments to the land acquisition policy. It should also bring accountability between government ministries and bureaucracy when it comes to clearing new projects.
Demag directionDemag claims to be the first company in its segment to set up a manufacturing unit in India in 2000.  Later it has expanded its footprint in India by setting up an even larger manufacturing plant at Chakan, Pune. It has developed products for the Indian market which are derived from its global designs and are sourced and manufactured locally. Demag is also planning to explore the opportunities to export to its plants across the world.
Manojit Acharya, Executive Director, Demag Cranes and Components (I) Pvt. Ltd.