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Venu Srinivasan, past president, Confederation of Indian Industry and Chairman and Managing Director of TVS Motor has opined that manufacturing GDP which should have been 25% has currently reached a 15%, and said the new Government must kickstart comprehensive reforms, ease of doing business, land acquisition and frameworks, exports competitiveness etc.
CII's delegation led by Srinivasan met Nirmala Sitharaman Union Commerce Minister, at a high level meeting of CII Members opined that manufacturing GDP which should have been 25% has currently reached a 15%, and several measures must be taken now to kickstart it through comprehensive reforms, ease of doing business, land acquisition & frameworks, exports competitiveness etc.
The manufacturing sector has also the potential to double the employment levels and ensure inclusive growth, he added. Fresh reforms on Factory Law needs regulation, he further added.
The CII delegation also felt that GST has to be implemented as the industries are suffering from input tax credit. Issues on Southern Gas Grids were also highlighted by members and requested improvements in the Chennai – Bangalore corridor by resolving the difference in opinion of the states.
Export incentives has to be relooked as Tamil Nadu is the net exporter and this can make a huge difference. Special incentives and development frameworks may be channeled to the Southern Districts of Tamil Nadu for growth and development.
While expressing concern in anomaly of duty structure and alignment of this structure, they suggested asked Centre to consider to create a level playing field for the local manufacturers. Private sector with strict monetary conditions can boost the rural economy through rural lending schemes/mechanism.
Company Bill and inverted duty structure needed changes as cost of products manufactured in India is viewed high compared to imported products. Members felt that the industry is in a situation where availability of power is low and cost is high, which is making global competition tough and Government attention has been requested.
Export competitiveness have to be enhanced by reviewing the export duty and incentives based on products / process will help to become competitive. Further midterm and long term plans for Green Technology may have to be considered for sustainable growth, they said.
