Challenges faced by the Indian manufacturing warrant appropriate responses from both the govt. as well as the industry for improving the competitiveness of the sector. There are a few areas where both the govt. and the industry need to put in efforts through a well-designed Public-Private partnership mode:

(i) The manufacturing sector needs to access the vast market possibilities available at the bottom of the income pyramid in the country.

(ii) The first essentiality for ensuring manufacturing competitiveness is macroeconomic stability.

(iii) Lowering the cost of manufacturing and improving the quality are essential for competitiveness

(iv) The inverted duty structure caused by FTAs as well as in all cases even otherwise needs to be rectified.

(v) Domestic indirect taxes are often singled out as a major reason why Indian manufacturing is uncompetitive.

(vi)Each labour legislation has a separate inspector and visits of inspectors are not synchronized across all labour enactments.

Tradeindia Editor

(Tradeindia Expert)

Tradeindia.com

Tradeindia.com
New Delhi, India