National manufacturing policy

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National manufacturing policy

  1. 1. "There may be many road blocks on the way to make that (NMP)actually implementable but we are on that path and I think its a tributethat a policy has been established and the government intends to stand byit,“ -RatanTata
  2. 2. The Indian government approved a long-debatedmanufacturing policy on October 25, 2011 The intent of the policy is to boost the country’smanufacturing capabilityTo increase the share of manufacturing sector from thecurrent level of around 16% of GDP to 25% by 2022To create 100 million new jobs by 2022 in specialmanufacturing hubs.
  3. 3. Increase technological depth and value addition inIndias manufacturing to enable India to improve its tradebalance which has been deteriorating with increases inimports (including large volumes of manufacturedgoods) exceeding exports.The NMP would be a key enabler for setting ofNational Manufacturing and Investment Zones(NMIZs), including the ambitious Delhi-Mumbai IndustrialCorridor (DMIC). This could be critical for India as an expected 130million Indians will be joining the workforce, many ofwhom may not be qualified to participate in India’sgrowing software industry.
  4. 4. In India, manufacturing as a share of GDP is muchlower than in economies such as China, where it is morethan 40%.Low labour costs could shift some manufacturing toIndia, and with a growing domestic market, localmanufacturing could also have logistical benefits.Electronics are likely to account for a large share oftotal manufacturing, which means that India’s new policycould be very important for the global electronics supplychain.
  5. 5. There will also be incentives for electronics,semiconductor and LED industries, as well as improvedtaxation policies such as a new goods and services tax(a form of a value-added tax) system.The policy provides for compensation of 20 days forevery year of service against the norm of 15 days. Thecompensation mechanism can be either a job lossinsurance policy by companies or a common sinkingfund set up by all units which can be dipped into in casea particular unit shuts shop.The policy also allows small and medium enterprisesexemption from long-term capital gains if the saleproceeds of a residential property are reinvested in theequity of a new start-up company.
  6. 6. “It hopes to... give comfort to investors through a single-windowclearance mechanism,” -Anand Sharma, Commerce and Industry Minister
  7. 7. Good industrial policy is not about micro-managing industry, nor is itabout picking winners - particular firms and technologies to bet on - arisky approach that has worked sometimes in other countries but failedoften too.Sound industrial policy is the process of accelerating learning within acountrys industrial eco-system that enables enterprises within it toimprove their competitiveness faster than enterprises in other countries.
  8. 8. Source: •www.displaysearchblog.com•www.articles.economictimes.indiatimes.com •www.indianexpress.com Thank You
  9. 9. COMING UP NEXT FOOD SECURITY BILLIF YOU HAVE ANY SUGGESTION, OPINION OR FEEDBACK PLEASE FEEL FREE TO WRITE US AT roshankumar.2007@rediffmail.com
  10. 10. Roshankumar S Pimpalkar

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