Mumbai

‘$5 trillion economy possible only with actionable policies’

Expressing concern: Industry leaders at the CII Manufacturing Summit in Mumbai on Friday.

Expressing concern: Industry leaders at the CII Manufacturing Summit in Mumbai on Friday.  

Industry leaders worried about low manufacturing levels

Demonetisation worked against manufacturing, Jamshyd Godrej, managing director, Godrej & Boyce Manufacturing Co. Ltd. said at a summit in the city on Friday, the third anniversary of the note ban.

Speaking at the Confederation of Industry (CII) Manufacturing Summit, Mr. Godrej said, “We are stuck at 17% of manufacturing share in the GDP and demonetisation which was supposed to have aided the manufacturing industry has instead worked against it.”

He also said the success of Prime Minister Narendra Modi’s vision of a $5 trillion economy would depend on suitable policy interventions focussing on small, medium and large enterprises and also skilling. Talking on ‘Positioning India as a Factory to the World’ Mr. Godrej expressed concern about the low manufacturing shares of India as compared to other countries. “Manufacturing in India is only 2% of global manufacturing industries. Ease of doing business should not only be exposed to two cities. Fast Moving Consumer Goods manufacturers have now realised there is a limit to their growth. In this scenario, the PM’s $5 trillion economy is possible only with actionable policies,” he said.

Mr. Godrej said the government’s announcements on corporate tax cuts is wonderful but consumption will not increase unless good investments are attracted. “We as creators need to understand taking one step ahead in growing sectors like e-commerce should not be at the cost of the environment and should not lead to unnecessary carbon footprint,” he said.

Sunil Mathur, managing director, Siemens India, while speaking about smart manufacturing, said, “Governmental schemes like ‘Make in India’ are bound to lead to an increase in manufacturing shares from 17% to 25% but that would be possible only by 2025.”

He said companies across the world are moving into smart manufacturing with an efficiency level of 99.99%, while India still stands at 70%. “India cannot move forward to match global standards unless it uses the latest technology and an integrated supply chain that also drives 99.99% efficiency. The country must also take care of the regulatory and infrastructural requirements of not just the large industries but also SMEs to drive competitiveness.”

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Printable version | Jul 6, 2020 6:01:16 PM | https://www.thehindu.com/news/cities/mumbai/5-trillion-economy-possible-only-with-actionable-policies/article29934273.ece

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