NEW DELHI: In a bid to make the country a manufacturing hub, Prime Minister Narendra Modi today promised easy and effective governance to enable ease of doing business as he launched the ‘Make in India’ campaign at an event where the government hinted at amending labour laws.
Following up on his Independence Day address call, he kicked off the ambitious project at a star-studded event where leading industrialists and business leaders from India and abroad pledged to support to the campaign.
At the event to showcase India’s potential as a location for factories to revive the flagging economy where Mukesh Ambani, Cyrus Mistry, Azim Premji, Kumar Mangalam Birla, Maruti Suzuki’s Kenichi Ayukawa and Lockheed Martin’s Phil Shaw were present, the Prime Minister said the gloom of the past 2-3 years when industry wanted to shift abroad has lifted.
He said the government will focus on building physical infrastructure as well as creating a digital network to make India a global hub for manufacturing of goods ranging from cars to softwares, satellites to submarines, pharmaceuticals to ports and paper to power.
While Modi himself did not announce any big-ticket measures, Commerce and Industry Nirmala Sitharaman said “With a view to providing flexibility in working hours, our Government is amending a number of labour laws,” she said.
“We are fully committed to delicensing, deregulation and radical changes as we go along. We have an open mind,” she said.
She noted that India has long been identified with red tapism, inspector raj and cumbersome rules and regulations that hinders smooth transaction of business.
“We want to change and chart up new course, new path wherein business entities are extended the proverbial red tap. Today’s event is being held after taking after taking serious of measures on ease of doing business,” she said.
Sitharaman said the government wants to boost the share of manufacturing in the USD 1.9 trillion economy to 25 per cent from about 15 per cent.
Modi said, “Global companies want to come to Asia but they don’t know where to look in Asia.”
“India is the only country which has democracy, the demographic dividend and demand,” he said.
Prime Minister said India ranks low on ease of doing business and that his government has sensitised officials in this regard.
Modi said his government will facilitate business through effective governance. “I do not only talk about good governance. I talk about effective governance and easy governance.”
To the expression ‘Look East’, the Prime Minister added ‘Link West’ and said a global vision was essential.
Stating that investment can’t just be attracted by an invitation, he said, “The most essential factor is trust. Let’s start with trust and the government will intervene only if it sees any deficiencies.”
As part of the initiative, the government has revamped an Invest India unit which will now act as the ‘first reference point’ for guiding investors on all aspects of regulatory issues. Also, a website, www.Makeinindia.Com, has been created for companies to seek policy clarifications within 72 hours.
The Prime Minister further said that “FDI” should be understood as “First Develop India” along with “Foreign Direct Investment” and urged investors not to look at the country merely as a market, but instead see it as an opportunity.
Modi said it is important for the purchasing power of the common man to increase, as this would further boost demand, and spur development, in addition to benefiting investors.
The faster the people are pulled out of poverty and brought into the middle class, the more opportunity will there be for global business, he said.
The Prime Minister said he had felt a mood of gloom among India’s business community in the last few years, due to lack of clarity on policy issues.
Modi added, however, that on the basis of the experience of the last few months, he could say that the gloom has lifted.
Trust is essential for investors to feel secure and it “too can be a transformative force”, he said.
Modi also referred to the Digital India mission, saying that it would ensure that government processes remain in tune with corporate processes. (AGENCIES)
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