Rana Kapoor

Rana Kapoor on Why India Needs To Focus On Manufacturing For A Better Economic Future

The recent pandemic has had a significant impact on developing countries like India, revealing a massive imbalance in the growth of sectors. The country has mostly focused on the service sector during the previous decade, which has risen significantly and produced meaningful jobs. Manufacturing, on the other hand, requires that strong drive. Manufacturing in India has stayed at a constant 16 percent of GDP for almost 30 years, and this needs to change. “The manufacturing sector holds great potential, not just to contribute to the nation’s rising economy, but also to provide employment to lakhs of Indians and reduce our reliance on imported goods,” stated Rana Kapoor, CEO of Yes Bank. He outlined key plans that must be implemented in order for India to become a manufacturing hub:

The National Manufacturing Policy

The National Manufacturing Policy (NMP) was introduced in 2011 with the goal of boosting it by 12-14 per cent by 2022, bringing the manufacturing sector’s contribution to GDP to 25 per cent. “This is anticipated to produce 100 million new job positions in the industrial sector,” Rana Kapoor informed. This strategy focuses primarily on industries that create capital goods, employ a large number of people, and are strategically important to the economy. Micro, small, and medium-sized businesses (MSMEs) as well as public-sector businesses would be targeted for development and expansion. National investment and manufacturing zones (NIMZs) would be established under this programme to stimulate manufacturing.

Make-in-India strategy

The Prime Minister’s Make in India campaign is a game-changing initiative to promote India’s manufacturing sector and strengthen the country’s entrepreneurial spirit. With its support for India’s MSMEs, Yes Bank, led by the visionary Rana Kapoor, was one of the first sponsors to this effort. The bank has provided a variety of training, orientation, and learning programmes to entrepreneurs, as well as easy loans for viable company concepts.

Labour Laws Rationalizing

Labour is the manufacturing industry’s strength, and in order to provide them with a work environment that encourages growth, the 44 federal labour laws and around 160 state labour laws must be categorised into four broad categories: industrial relations, wages, employment standards, and social security. Rana Kapoor emphasised the need of flexible labour. They assist in achieving a good balance between employee welfare and industry needs, resulting in a work culture that increases profits while also providing a thriving atmosphere for individuals to excel and attain their full potential.

Land Acquisition Act

The acquisition of land is a critical factor in the growth of infrastructure and industry, and the authorities must revise the Land Acquisition Act to make this possible. Rana Kapoor made a few suggestions for loosening the act’s rules in order to alleviate the industry’s current problems. Land banks can be established across states, and those that already exist should be extended to designate regions for industrial growth.

Policy on FDI

There is an immediate need to enhance outside investments in order to build India’s manufacturing competence in the long run, which can be facilitated by loosening the existing FDI policy to satisfy the needs of the industry. Integrating the country’s global trade strategy with the ‘Make in India’ campaign will aid in the strengthening of several industry areas with strong domestic value addition, such as textiles, electrical items, and others.

Industry Academia Partnership

Learning resources, in addition to infrastructure and technology, are critical for developing human resource capabilities. Industry training and industrial apprenticeship programmes can be implemented in partnership with the country’s ITIs to increase knowledge and productivity while also providing sustainable employment opportunities for the county’s young. Industry-academia collaboration will go a long way toward establishing a thriving domestic R&D development ecosystem and nourishing the country’s design and innovation ecosystem.

Manufacturing, according to Rana Kapoor, is the next big transformation India requires. While government entities have refined many rules, non-governmental organisations may assist with money, resources, and the creation of a nurturing environment that will help the manufacturing industry prosper and contribute to the Indian economy.

Leave a Reply

Your email address will not be published.

Real Estate Investing Advice Previous post Seven Wonders City: A Few Pieces Of Real Estate Investing Advice
Pradeep Agarwal Next post Pradeep Agarwal throws light on the technology trend that will dominate the upcoming months