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India needs to enhance share of manufacturing to GDP to 25% in next 25 years; Industry should focus on capital formation and R&D: Rajesh K Singh, Secretary DPIIT

Dec 09, 2023

  • Sustained Growth, Continuous Reforms, Stakeholders Collaboration emerged as key themes during the session on Aligning Stakeholders for Growth at FICCI AGM
  • DPIIT has recently conducted a Cost of Regulation Study for all States and UTs

 

NEW DELHI, 09 December 2023: Addressing the session on ‘Aligning Stakeholders for Growth’ during FICCI’s 96th Annual General Meeting (AGM) and Annual Convention, Mr Rajesh K Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Government of India said, “When you try to align stakeholders for growth, the first target is to have good communication to understand what growth really means. Our Hon'ble Prime Minister Shri Narendra Modi has shown us the vision for next 25 years, which is the Amrit Kaal, to become a $ 32 trillion economy and increase our per capita by atleast 9 times.” 

Mr Singh emphasised, “We need to enhance share of manufacturing from current 15% to atleast 25% of GDP, for which the industry needs to work towards greater industrialisation through enhancing capital formation as well as R&D. India spends only 0.7% of its GDP in R&D, which is mostly by the government. The centre is already taking steps like Make in India, PLI Schemes to convert India into a manufacturing powerhouse.” He further mentioned that there are many other factors that stand to our advantage including tremendous investment in physical and digital infrastructure, as well as proliferation of the startup ecosystem.  

In his address he also highlighted the steps taken by the government towards Ease of Doing Business as well as towards Ease of Living in India through initiatives like decriminalisation of some laws through the Jan Vishwas Bill. Shri Singh further mentioned that initiatives like Sustainable Development Index by NITI Aayog, EoDB Index by DPIIT create healthy competition amongst the States in terms of trying to improve their business environment.  

He shared that DPIIT has recently conducted a Cost of Regulation Study, for the first time in India, across all states and union territories, spanned over 1.5 years, for 13 services. The study shows that there are tremendous variations in States in terms of cost of regulation and the study will help them in self-assessment of these costs and take steps to reduce them. On an average, a company spends Rs 21 lakhs to access the 13 services covered in the study. 

Mr Subhrakant Panda, President, FICCI and Managing Director, Indian Metals & Ferro Alloys Ltd. (IMFA) said, “There have been sustained reforms by the government along with thoughtfulness to policy making and focussed execution to ensure that we capitalise on our potential. Industry and business chambers can work more pro-actively for pointing out the areas which need further alignment. We also need to work together to bring in a mechanism for regular review of the policies for example using the sunset clause for every regulation and promote self-regulation amongst businesses given that COVID-19 has taught us that self-regulation is possible.”

Dr Anish Shah, President - Elect, FICCI and Group CEO & Managing Director, Mahindra Group while suggesting on the need for alignment, highlighted that, “our Centre and State Governments have aligned to a great extent on philosophy, and this alignment is increasing for policy, however, we need to now work towards alignment in implementation such as the single window clearance system for businesses at the states level”. He also emphasised on the role of FICCI, which will be to bring all stakeholders together and partner with the government in identifying and strengthening our competitive advantages in the world. 

Ms Jyoti Vij, Additional Director General, FICCI said, “Given the bright spot that India is, there is a need for all the stakeholders to come together to support sustainable and higher trajectory of growth. Centre and States are two components that need to align wholly; however, cities are also as important since much of the growth is going to come out of the cities, and we need to plan that aspect too.” 

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