 "Ficci for proactive govt to boost manufacturing")
Concerned over the slowdown in growth and employment in manufacturing, FICCI on Thursday released a 12 point "Manufacturing Mandate.'' It focuses on job creation and skill development. FICCI has suggested easing of monetary policy required to boost investments and bringing down subsidies and pruning non-productive government expenditure.
According to FICCI, the system of land allotment should be made totally transparent and e-based and States need to increase the Floor Area Ratio for optimal utilization of existing industrial land. The Centre can seek such higher Floor Area Ratio at least in their centrally sponsored/supported parks and clusters.
Further, FICCI has made a strong case for Workers' Housing Policy either at the Centre or State for the manufacturing sector. There should be compulsory allocation of at least 20% land (of industrial belt)in and around industrial area or estate for low cost housing. FICCI has emphasised the need to fast track change of land use to housing in case land is purchased directly by the project proponent.
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On Labour laws, the FICCI Manufacturing Mandate suggests specific amendments in the Factories Act, Contract Labour Act and Industrial Disputes Act to align them with the international best practices and ensure faster employment generation.
Kidwai called upon the government to prioritise policies and measures which would ensure that manufacturing rebounds and creates jobs for the millions who are going to join the labour force in the next ten to fifteen years. She said the the Manufacturing Mandate suggests a 10% manufacturing growth on a long term basis with a potential to create 67 million jobs in manufacturing directly, provided some pro-active labour market policies are implemented as suggested in the mandate.
''With 10% manufacturing growth, we can achieve a size of $950 billion by 2025 from the current size of $ 250 billion for our manufacturing sector and take the total employment in manufacturing to 115 million during the period. While, this remains short of the targeted additional employment of 100 million by 2025 as per the National Manufacturing Policy this would be more realistic given the current economic scenario,'' noted Kidwai.