Top 5 Initiatives that will grow India’s Manufacturing Sector

Manufacturing has emerged as one of the high growth sectors in India. It can do better with a simpler tax structure, better infrastructure and a more robust component ecosystem.

Here are the top 5 initiatives that helped the manufacturing sector:

Make in India: Make in India was launched to facilitate investment, support innovation and build a world-class manufacturing ecosystem in India.

Information on 25 key sectors is now available online along with details of FDI policy, National Manufacturing Policy, intellectual property rights, and the Delhi-Mumbai Industrial Corridor and other National Industrial Corridors. An Investor Facilitation Cell was also created in 'Invest India' to help potential investors.

E-Biz Project: A Government to Business (G2B) portal is about to be launched that will be a one-stop shop for delivery of services to the investors and address the needs of the business and industry.

One can now apply for industrial license (IL) and industrial entrepreneur memorandum (IEM) online and is now available 24x7.

Skill development: A new Ministry of Skill Development and Entrepreneurship was set up to promote skill and entrepreneurial activities.

Common norms for skill training across central ministries/ departments are being set up. The government is planning to align the National Council for Vocational Training (NCVT), School boards, and the University Grants Commission (UGC).

Labour- sector reforms: The Shram Suvidha portal does online registrations, filing of self-certified, simplified, single online returns and introduced a transparent labour inspection scheme via a computerized system.

A Universal Account Number has also been launched for facilitating portable, hassle-free, and universally accessible Provident Fund accounts for employees.

The Apprentices Act, 1961 has also been amended to make it flexible and attractive to youth and industry. The Apprentice Protsahan Yojana is set up to support micro small and medium enterprises (MSME) in the manufacturing sector.

Ease of Doing Business: The most important of measures is the liberalization of licensing and deregulation of a large number of defense products.

Extending the validity of licenses, adopting a checklist with specific time-lines for processing all applications filed by foreign investors and automation of processes for registration with the Employees Provident Fund Organization and Employees State Insurance Corporation have also helped.

Image credit: Indiatimes