State of Manufacturing - Inputs on Root Causes
Dear Friends:
Below is a summary of key issues as highlighted by you with Manufacturing in India. Kindly review them and add anything of importance that is missing.
Otherwise, please help identify Root Causes for some of these Issues.
Once we know the Root Causes, we will identify Solutions and submit the whitepaper on the subject to PMO, and Ministries associated with the subject.
I look forward to your inputs!
Rajendra Pratap Gupta
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Manufacturing – Key Issues
1. Highly volatile policies to promote manufacturing
2. There are a lot of formalities to start a manufacturing unit
3. Very slow paper processing
4. Getting land to set up a manufacturing unit is very tough
5. Too many clearances required from different departments
6. Harsh licensing policies
7. Any Government department you go to, nothing moves forward until you pay a bribe
8. Corruption starts right from the submission of applications
9. Financial aid from the government doesn’t reach the right people
10. Labour unions create a lot of hindrance to smooth working
11. Presence of too many archaic, irrelevant business laws which not only increase complexity, but also increase scope for corruption
12. Lack of coordination between government departments
13. No obvious incentives to attract foreign direct investors, Original Equipment Manufacturers etc.
14. No tax breaks to the manufacturing SEZs
15. Poor infrastructure i.e. roads, drainage, Street lights , security, transportation
16. Lack of technology & investment on R&D
17. Imported product cheaper than one manufactured in India
18. Very high transportation time/increasing product delivery time due to tedious custom procedures
19. Political instability in the country
20. Input costs of power is very high
21. Environmental policies become a hindrance in many projects more
Below is a summary of key issues as highlighted by you with Manufacturing in India. Kindly review them and add anything of importance that is missing.
Otherwise, please help identify Root Causes for some of these Issues.
Once we know the Root Causes, we will identify Solutions and submit the whitepaper on the subject to PMO, and Ministries associated with the subject.
I look forward to your inputs!
Rajendra Pratap Gupta
-------------------------------------------------------------------------------------------------------------------------------------
Manufacturing – Key Issues
1. Highly volatile policies to promote manufacturing
2. There are a lot of formalities to start a manufacturing unit
3. Very slow paper processing
4. Getting land to set up a manufacturing unit is very tough
5. Too many clearances required from different departments
6. Harsh licensing policies
7. Any Government department you go to, nothing moves forward until you pay a bribe
8. Corruption starts right from the submission of applications
9. Financial aid from the government doesn’t reach the right people
10. Labour unions create a lot of hindrance to smooth working
11. Presence of too many archaic, irrelevant business laws which not only increase complexity, but also increase scope for corruption
12. Lack of coordination between government departments
13. No obvious incentives to attract foreign direct investors, Original Equipment Manufacturers etc.
14. No tax breaks to the manufacturing SEZs
15. Poor infrastructure i.e. roads, drainage, Street lights , security, transportation
16. Lack of technology & investment on R&D
17. Imported product cheaper than one manufactured in India
18. Very high transportation time/increasing product delivery time due to tedious custom procedures
19. Political instability in the country
20. Input costs of power is very high
21. Environmental policies become a hindrance in many projects more
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