Let’s make it India!

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Let’s make it India!

Saturday, 23 July 2022 | Pioneer

Let’s make it India!

While the Centre is trying hard to boost manufacturing, states’ response is not as enthusiastic

That manufacturing is not languishing is quite well-known. Something or the other comes up every day telling us that industry is not doing good in the country, notwithstanding the well-intentioned Make in India and production-linked incentives. Now there is a media report that information technology (IT) companies account for around 43 percent of the forex revenues of listed firms. A decade ago, this was 22 percent. While the listed IT services companies earned nearly Rs 4.2 lakh crore through exports in 2021-22, a rise of 15 percent over the previous fiscal, the forex revenues or exports of the rest of the BSE500 companies were down 11.9 percent to Rs 5.6 lakh crore in FY22. Minister of State for Commerce & Industry Som Parkash said in Parliament on Wednesday that the Department for Promotion of Industry & Internal Trade (DPIIT), which is under his Ministry, is spearheading the next phase of Ease of Doing Business which is aimed at reducing the compliance burden on businesses and citizens. Parkash said. “The exercise is an ongoing effort, aimed at achieving a conducive regulatory environment.”

He went on to list the important government initiatives: simplification of procedures related to applications, renewals, inspections, filing records, etc.; rationalization of laws; digitization by creating online interfaces eliminating manual forms and records; and decriminalization of minor violations.

The DPIIT also interacts regularly with Central Ministries Departments and industry associations “to understand concerns of the industry and facilitate

resolutions of these issues.” Then there is the Business Reform Action Plan (BRAP) exercise which began in December 2014, he said. Parkash said, “BRAP covers reform areas such as access to information and transparency, the single window system, land administration, transfer of land, property, etc.” Industry representatives appreciate the approach and efforts of the Central government; the problem, however, is at the state level. It is here that business persons  face the real challenge.

 Not all state governments are as eager about industrialization as they should be, given the benefits it entails — faster higher growth, augmented economic activity, greater revenue to the state, employment generation, general prosperity, and better electoral prospects as a result. It is not within the powers of the Centre to order states to adopt a particular course, but it can encourage and nudge them. The DPIIT, for instance, ranks states on the initiatives taken by them to develop the startup ecosystem for promoting budding entrepreneurs. In its recent ranking, Gujarat and Karnataka topped the list. Meghalaya was adjudged to be the best performer among smaller states. While nudging is good and may have yielded some good results as well, a lot more needs to be done. And that has to be at the political rather than governmental level. Leaders in states must be made to realize that good economics can also be good politics.

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