10 pt agenda to push manufacturing sector growth

New Delhi, Jun 8: A 10 point promotional policy framework to boost the growth of manufacturing sector to 12 per cent, including reduction in revenue deficit and creation of world class infrastructure was suggested by the Federation of Indian Chambers of Commerce and Industry (FICCI) here today.

The agenda stressed upon reduction in revenue deficit to release resources for accelerating public investment and restructuring of direct to accelerate investments in manufacturing through reduction in the corporate tax rate or providing investment allowance and free depreciation.

Containing views from 1,000 manufacturing companies, the agenda also called for introducing an Exim policy that uses drawback rates to neutralise the impact of taxes on goods and services, creation of SEZs and making substantial increase in government support to global marketing efforts of Indian manufacturing companies, particularly SMEs.

Creation of world-class infrastructure to increase the speed of movement of manufactured goods at reduced costs and aggressive promotion of public-private partnerships to build infrastructure were also stressed upon.

Besides, according to the agenda all power and petroleum subsidies should be funded by the exchequer to eliminate cross-subsidies so that energy is available to industry and transport sectors at globally competitive rates.

Adopting flexible labour policy and implementation of elements of the National Rural Employment Guarantee Program like providing minimum employment guarantee for 100 days in labour-intensive industries such as apparel and leather-goods were also suggested.

The agenda also highlighted the importance for a regulatory reform that benchmarks entry and exit time and costs for investors in manufacturing with global levels; financial and mining sector reforms and fillip to SMEs Modernisation and expansion of vocational and technical training and higher investments in Research and Development through long-term tax breaks and expenditure support, were also discussed in the programme.

Pointing out that the country has huge potential to emerge as a leading global hub for manufacturing including, IT skills, highly skilled factory workers, abundant and inexpensive labour and ability to work in the harshest conditions, it said all India needs is a promotional policy framework for manufacturing.

UNI