Government s 5P formula on manufacturing augurs well CII President

The 5P formula is defined as Perspective Profile Policy Projects and People
Government s 5P formula on manufacturing augurs well CII President

“Prime Minister Modi’s ‘5P’ approach to manufacturing has been transformational for the sector, specifically, and the Indian economy as a whole”, according to Sumit Mazumder, President, Confederation of Indian Industry (CII). Elaborating on the ‘5P’ formula, Mazumder “defined this as – Perspective, Profile, Policy, Projects, People – which, together have created a new scaffolding on which the future of manufacturing in India is being built. The architectural vision is a long-term one by design and the ‘Make in India’ campaign is central to this new edifice. The long-term vision for Indian manufacturing that is being rolled out will play a key role in Indian industry being a critical part of global supply chains,” according to Mazumder.

Commenting on the first ‘P’ – Perspective – Mazumder said that the “Make in India’ campaign – whose vision is to increase the share of manufacturing in GDP, from the current 15 percent to 25 percent by 2022 – has become the fulcrum to the realization of a new vision for India and Indian manufacturing. This one vision has created a unifying aspiration across the country and the 25 sectors which have been identified as the catalysts for making this a reality. According to Mazumder, the 230-odd specific recommendations for the immediate, short and medium terms that were identified in December 2014 along with a strategy for improving the ease of doing business as well as focusing on skills, have laid the foundation stones for a robust framework for Indian manufacturing as well as for the Indian economy as a whole. While these are early days, the IIP index has already clocked a growth of 2.3 percent in FY 2015 as opposed to negative growth witnessed in FY 2014.

In the process, the ‘Profile’ that has been created by the Hon’ble Prime Minister in articulating this vision has firmly put manufacturing in India in the mindspace of all constituents – domestic and international. Today, all Ministries in the Central Government are encouraged to keep ‘Make in India’ as a pivotal focus for their activities. The co-operative Federalism strategy propagated by the Hon’ble Prime Minister and empowering of states further support this endeavour. Further, the foreign investor community is extremely cognizant of this driver and a number of foreign investors are aligning their investment decisions to this mission, stated a CII release.

According to the CII President, the Policy agenda has been the key anchor to the transformational aspiration of “Make in India”. The relaxation of Foreign Direct Investment (FDI) permissible in Railways, Construction and Defence has made the sectors attractive for investment as well as acted as important bellwethers for the economic direction of the Government. Coal auctions have triggered a new impetus to overall economic activity. The notification of the Mines and Mineral Development and Regulation (MMDR) Act has given impetus to reviving mining activity in the country. According to CII, the last 12 months have witnessed the drafting of new policies w.r.t. Capital Goods, Chemicals, Steel and Textiles which are currently in various stages of finalization. Also, a slew of measures under the umbrella of Ease of Doing Business have been initiated such as third-party certification and self-certification, expediting of grants of environmental clearances, online labour inspection system, introduction of Unique Account Numbers for members of the EPFO and a dedicated Investor Facilitation Cell (IFC).

The impact of the above measures can be seen on the fourth pillar, Projects. According to CMIE, the total value of stalled projects has decreased from Rs 2.5 lakh crore in December 2013 to Rs 0.9 lakh crore in March 2015. New projects announcements have also gone up.

The fifth pillar – People – is a critical factor in the success of ‘Make in India’. To help build the talent pipeline to support India’s manufacturing potential, CII has been delighted to see focus given to the entire spectrum of the talent pipeline – by creating a new Ministry of Skill Development & Entrepreneurship to coordinate over 70 skill development schemes run by more than 20 Ministries / Departments in the country as well giving a fillip to the network of IITs and IIMs. The Skill Development Initiative has also been aligned to the 25 Sectors of ‘Make in India’ with Sector Specific Skill Councils. Skill gap studies have also been conducted for high priority sectors including key manufacturing sectors. As part of the creating the necessary Skill Infrastructure in India an apprenticeship scheme and a revamped‎ Rashtriya Swasthya Bima Yojana have been launched.

- Advertisement -
The Changing Face of Rural India