Prime Minister today at his independence day speech invited citizens to participate in accelerating manufacturing in India, But Mr. Prime Minister first is the creating an ambient environment in the country to implement your “Come Make in India” plans.
Here are the few areas which would be a hurdle for the Prime Minister’s Come Make In India scheme.
1. Land Acquisition-: Current prevailing law on land acquisition is not favorable for the entrepreneurs who wish to set up manufacturing units. The process of acquiring land is cumbersome and require lots of red tape. Example is case of TATA NANO factory, when lots of politics associated with land acquisition how can one set up a factory in various states.India needs more manufacturer friendly processes for land acquisition.
2. Red Tape-: India is a country where you need to go through lots of processes to set up your own manufacturing hub, there is the need to simplify the same.There is no point a manufacturer waits for years to start actual manufacturing because of cumbersome processes as the Idea is “Come Make in India” not “Come and wait in India”.
Red Tape along with corruption in various departments is a double jeopardy for the manufacturers, this is the reason why many manufacturers are not setting up in India.PM modi today was silent on the issue of corruption, he should clarify his stand on corruption.
4. Taxation System-: The complexity of taxation system and high rate of tax,do demotivates the manufacturers, low margin of profit due to this again put these manufacturers on back foot, India needs to revamp the taxation system to boost manufacturing sector.
5. Labor laws-: Frequent strike by the trade union is again a set back for manufacturers, like we have seen in the case of maruti suzuki. The Labor laws need to be revamped in such a way that they are consistent with the interests of manufacturers and the labor.As far as possible certain mechanisms must be there to prevent strikes.
These are the some points which needs pondering by current government to implement the ambitious “COME AND MAKE IN INDIA” scheme which would make India the no-1 manufacturing hub.