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"Every one per cent
growth in the manufacturing sector would create 20-30 million additional jobs,"
Bhartia told Hindustan Times.
The proposed national
manufacturing investment zone (NMIZ) policy addresses these issues, and
therefore needs quick enactment, he said.
The government has
proposed the setting up of mega NMIZs to drive industrial growth in this decade.
An area would be
specifically delineated for the establishment of manufacturing facilities for
domestic and export led production, along with associated services and
infrastructure.
The objective for setting
up NMIZs is to increase the sectoral share of manufacturing in gross domestic
product (GDP) to 25 per cent by 2022, make the country a hub for both domestic
and international markets.
"There is need for an
enabling manufacturing policy with simpler clearances, appropriate
infrastructure and flexible labour rules," said Bhartia, who is the co-chairman
of pharmaceutical firm, Jubilant Organosys Ltd.
"Land acquisition and
relief and rehabilitation laws should be in keeping with the requirement of
industrialisation," he said.
The CII president said
lack of world-class infrastructure is holding back the Indian economy from
achieving its full potential. "There is a need to improve dispute resolution
mechanism for road development. Besides, there is need to corporatise major
ports and improve port evacuation facilities."
The industry also wants
an early rollout of the proposed nation-wide goods and services tax (GST).
"The industry will take
not more than three months to switch over to the new GST system. It will make
the system more efficient."
The government is
presently discussing with the state governments the roadmap to usher in a simple
indirect tax regime for the ambitious GST.
The proposals, if
adopted, can dramatically alter tax administration by giving a one-shot solution
to a welter of levies such as excise, value added tax and octroi. However, its
implementation faces political hurdles with state governments still struggling
to hammer out a consensus on contentious administrative and conceptual issues.
Source: Hindustan Times, India, dated
16/05/2010
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