Sunday September 22, 2019
Home Business Make in Indi...

Make in India: Steps taken by Modi government to boost manufacturing sector

0
//
Modi
Image source: digitalindiainsight.com

make-in-india-big-image-3_1411810514_1411810524

By NewsGram Staff Writer

Talking about Prime Minister Narendra Modi’s  pet scheme ‘Make in India’, the Minister of State in the Ministry of Commerce & Industry, Nirmala Sitharaman today informed that a number of initiatives have been taken by the government to improve ease of doing business in India.

” A number of steps have been taken by the government to improve ease of doing business. Rules and procedures have been simplified and a number of products has been taken off licensing requirements,” said Sitharaman.

‘Make in India’ initiative aims to provide a congenial environment to the business community so that they can devote their effort, resources and energy in productive work

Here are few important steps taken by the government to give a boost to manufacturing sector in India:

Creating conducive environment: The government intends to provide a robust infrastructure to business through development of various facilities and institutions. “We are aiming at develop industrial corridors and smart cities to provide a conducive working environment with state-of-the-art technology,” the minister said, and added, ” Efforts are also being made to provide skilled manpower through a national skill development programme. ”

Roping in Foreign Direct Investments: “The Policy in defence sector has been liberalized and FDI cap has been raised from 26% to 49%. 100% FDI has been allowed in defence sector for modern & state of the art technology on case to case basis. 100% FDI under automatic route has been permitted in construction, operation and maintenance in Rail Infrastructure projects,” the Commerce Minister informed.

Target specific approach: Twenty five industry related ministries are working on sector specific targets, which have been identified by them after detailed discussion with various stakeholders in the National Workshop held on 29th December 2014. Each ministry has identified action plan for the next one year and three years.

Investor Facilitation Cell : An Investor Facilitation Cell has been created by the government with a dedicated team to guide and assist first-time investors. “Make in India program represents an attitudinal shift in how India relates to investors; not as a permit-issuing authority, but as a true business partner, ” Sitharaman said.

Next Story

Finance Minister Nirmala Sitharaman Measures To Boost Export and Housing Sector

With GDP growth sliding to six-year low of 5 per cent, Finance Minister Nirmala Sitharaman on Saturday announced a fresh set of measures to boost exports and the housing sector.

0
TV, LED panels, Finance Minister, India, import duty
Finance Ministry has abolished the import duty on open cell LED TV panels from 5 per cent to zero. Wikimedia Commons

With GDP growth sliding to six-year low of 5 per cent in April-June quarter and several sectors facing low demand, Finance Minister Nirmala Sitharaman on Saturday announced a fresh set of measures to boost exports and the housing sector.

The key measures include extending the scheme of Reimbursement of taxes and Duties for export promotion, fully automated electronic refund for Input Tax Credits (ITC) in GST, revised priority sector lending norms for exports and expanding the scope of Export Credit Insurance Scheme (ECIS). An inter-ministerial working group has also been formed to monitor export finance.

Accordingly, the Scheme for Remission of duties or Taxes on Export Product (RoDTEP) was announced which will replace Merchandise Exports from India Scheme (MEIS) for textiles. In effect, RoDTEP will more than adequately incentivise exporters than existing schemes put together.

Revenue foregone on this account is projected at up to Rs 50,000 crore.

Existing dispensation in textiles of MEIS plus old ROSL scheme will continue up to December 12, 2019. Textile and all other sectors which currently enjoy incentives upto 2 per cent over MEIS will transit into RoDTEP from January 1, 2020.

Finance, Minister, Nirmala Sitharaman, GDP, Measures
There is concern about the speed and nature of the government and industry’s response, and will these actions turnaround things immediately, or not. Pixabay

Sitharaman also announced to reduce turnaround time for exports by leveraging technology and benchmarking it to Boston and Shanghai ports.

She said that priority sector lending norms for exports is being examined by the RBI and the guidelines will come out soon. Further, government will provide Rs 1,700 crore for export guarantees and to cut credit cost for the exporters.

The minister came out with several measures to prop up country’s housing sector which is considered one of the main job creators. Now, there would be relaxed ECB norms for housing sector. Further, interest on house building advance would be lowered by linking it with 10-year government securities.

ALSO READ: India has Over Time Become Hub and Spokesperson for World Cricket

Sitharaman said that there would be special window for affordable and middle-income housing. Under this, a special window to provide last-mile funding for housing projects which are non-NCLT, non-NPA cases to complete unfinished projects. For this, a fund of Rs 10,000 crore would be contributed by the government and “roughly the same size by outside investors.”

The fresh set of measures to boost the economy has come in the wake of sinking business sentiment across the industry.

With most engines of growth stuttering, the Reserve Bank of India recently lowered its GDP forecast and pegged it at 6.9 per cent in 2019-20. Several rating agencies and research firms expect the growth to be in the range of 6.5-7 per cent.

Besides domestic consumption slowdown, the external factors remain adverse threatening to pull down the economy. A lingering US-China trade war and fears of a global recession could make things worse. (IANS)