FB   
 
Powered bysps
        Society for Policy Studies
 
 

 
Centre must embrace Niti Aayog findings to get manufacturing sector back on track
Posted:Aug 30, 2017
 
Print
Share
  
increase Font size decrease Font size
 
The business of India remains to make it hard to do business. A Niti Aayog and IDFC institute survey of formal Indian manufacturing firms has found that as of the 2016 reforms by the NDA government, factory-owners largely do not feel things had changed too much. Only a minority of the businessmen believed things had gotten worse, but the survey’s findings are a sign of how deeply entrenched is the anti-business environment in India. Presumably, 2017 has not made life easier given the immediate disruption caused by demonetisation and the introduction of the goods and service tax (GST).
 
The results should not be a complete surprise. The Modi government was able to lift India only one point in the broader World Bank’s 2017 Doing Business survey of countries — from an abysmal 131 to 130. The Niti Aayog survey looked at the sector of the economy most entangled in India’s socialist legacy: White economy manufacturing.
 
It showed a third of businessmen believed things had remained the same, a slightly smaller number said things had improved and about a fifth felt things had gotten worse. The government scored best when it came to the basics: Power, water and setting up a business. It was the politically difficult parts of economic reform — land, labour, regulations and taxes — where it was felt the government’s actions had done little. Legal matters were one area where things were judged to have gotten worse.
 
Unfortunately, inputs that were most important to a specific sector were often the ones companies had the greatest problems. Labour restrictions were cited as the worst problem for labour-intensive industries. Getting electricity was still the primary source of migraine for power-intensive industries. The most positive finding was that new companies gave the overall business environment a bigger thumbs up than older firms.
 
Surprisingly, many firms had little or no knowledge of the steps carried out to make life easier for them. Only 20% of manufacturing start-ups were using the new single window clearance system.
 
Clearly while there is much that is positive about the changes being attempted by the government, knowledge about them is being disseminated in the ways of a previous generations. The Indian State has spent much of the past 70 years making manufacturing in the country as difficult as possible. Turning this around was always going to be difficult. The Centre should do well to embrace the findings, draw the suitable lessons and begin to redress the lacunae that have been pointed out.
 
 
 
 
 
Print
Share
  
increase Font size decrease Font size
 

Disclaimer: South Asia Monitor does not accept responsibility for the views or ideology expressed in any article, signed or unsigned, which appears on its site. What it does accept is responsibility for giving it a chance to appear and enter the public discourse.
Comments (Total Comments 0) Post Comments Post Comment
Review
 
 
 
 
spotlight image Thailand will be the coordinating country for India within ASEAN from July. In an exclusive interview with INDIA REVIEW & ANALYSIS, the fortnightly journal of the Society for Policy Studies (SPS),  Thailand’s Ambassador to India, Chutintorn Gongsakdi, gave a comprehensive view of bilateral relations and
 
read-more
The struggle for autonomy has been going on within the Indian Institutes of Management (IIMs) from their inception, writes P.D. Rai
 
read-more
As India and the 10-nation ASEAN bloc culminate the commemoration of 25 years of their dialogue partnership with a summit in New Delhi January 25 that all the leaders will attend, India is laying out the crimson carpet to ensure that the first ever Republic Day celebrations at which 10 ASEAN leaders will be Chief Guests, jointly, is a
 
read-more
Afghanistan's leaders have asked the Security Council to mobilise international pressure on Pakistan to stop supporting terrorists, United States Permanent Representative said on Wednesday. Speaking to reporters here after the Council's weekend visit to Afghanistan and meetings with the nation's leaders, Haley said, &l
 
read-more
As the Myanmar government’s violent policy towards its Rohingya Muslims drew increasing international condemnation in 2016, the country’s sometime icon of democracy, Aung San Suu Kyi, declined to speak out for the persecuted minority.
 
read-more
“We have a very solid commitment to climate action,” he said. “We cannot be defeated by climate change and we are not yet winning this battle” and the biggest victims of climate change are the developing countries that are members of the Group of 77 (G77).
 
read-more
In a bid to promote trilateral innovation and business opportunities between the US, India, and Israel, Israel-India Technology Group has launched a trilateral fund of $50 million. "We ar...
 
read-more
Column-image

The Tehreek-e-Taliban Pakistan (TTP) has for the first time claimed responsibility for the assassination of former Pakistani Prime Minister Benazir Bhutto in a new book in written by Taliban leader Abu Mansoor Asim Mufti Noor Wali.

 
Column-image

Title: Salafi-Jihadism -The History of an Idea; Author: Shiraz Maher; Publisher: Penguin Random House UK: Pages: 292; Price: Rs 499

 
Column-image

A Review of Anatomy of Failure by Harlan K. Ullman (Naval Institute Press, 242 pages)

 
Column-image

Title: The Beckoning Isle; Author: Abhay Narayan Sapru; Publisher: Wisdom Tree; Pages: 157; Price: Rs 245

 
Column-image

Title: India Now And In Transition; Editor: Atul Thakur ; Publisher: Niyogi Books: Pages: 448; Price: Rs 599