SOSFROMMANUFACTURING INDUSTRYININDIA

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INDUSTRIESDILEMA TheTelecomandalliedindustries inmanufacturingiscloseto crashunlessspecialincentive andsupporttomanufacturingis providedbyGovernment.

PROBLEMS&PROBLEMS
ExceptMNCsmostofSMEandfeedingindustries alloverIndiaareabouttoclosedueto 1. highbankinterestrates, 2. poorlaborlaws, 3. unreasonabledemandsofIncomeTaxofficersto completetheirannualtargets, 4. increaseinexcisedutyand 5. servicetax, 6. withdrawalofspecialincentivesfromeconomic zoneslikeBaddi inHimachalandmanyzonesin Uttarakhand .

DISMISALSTATUS
AvisittomostofindustrialzonesalloverIndiawhetherit isspecialeconomiczoneinBaddi ,ornormalindustrial areainsayFaridabadorUdyog vihar inGurgaon orKondli industrialareawillrevealthatmorethan60%factoriesare closedorabandonedorbeingconvertedtoBPOmulti storeyed officeswithnodemandinsight.Mostofnew developedmultistoreyed officesmadebybuildersare vacantasBPObusinesshasfallendrastically. 4AlreadyITandBPOindustryexceptinhandsofMNCs arealsofacingthreatofdiscomfortandmanpowercut.

SUPPORTFROMGOVERNEMENT

UnlesstheGovt supportsall theseindustrieswillclose, creatingunemploymentand unrestinsocietywhichmeans morecrimes.

BANKINGSUPPORT
ReduceBankInterestandpenaltiesonCC accounts.Givemoretimeatleastbyoneyearto willingindustrieswhoseaccountshavebeen declaredNPtonormalize.Therearemanysuch entrepreneurswhoseaccountsaredeclaredNP duetolossesinTelecomandalliedindustries andareatpointofclosure. Makeliberalpoliciesforrestructuringof outstandingloansofentrepreneurssothatthey canrecoverfromexistinglowinbusiness.

INCOMETAXDEPARTMENTAND SPECIALECONOMICZONES
ManyITofficershaveslappedheavypenaltiestoalreadyailing entrepreneursandindustriesononenoncomplianceorother .Suchcasesshouldbereviewedandgenuinecasesshouldbe supportediftheyareatpointofclosure. ThusmanyindustrieslocatedinSEZorspecialweakareaswhereIT concessionsaregiven,policiesshouldbetoencourageindustriesto growandnotslapheavypenalties.Therearecaseswhere100% manufacturingintheseareasarenotpossiblebutcoreproductis producedatfactory,butITofficeshaveslappedheavypenaltiesfor accessorieswhicharenotproducedlocallybutgoalongwithmain productandhenceapartofmanufacturing.SuchTelecom industriesarealsoatpointofclosureduetowrongassessmentby IToffices.Suchindustriesmustbesupportedsothattheycan survive.

LABOURLAWS
Laborlawsshouldbemadeliberal.Hireand fireshouldbelinkedwithperformanceand productivityofemployeesevenforunskilled workers.Iftheindustryisreducingmanpower duetolowbusiness,laborofficemust supportanddonotallowlocallaborunions toexploitbywayofunreasonable compensationdemands.

LOCALTRANSPORTERSUNION
Localtransportersmakeunionandcharge highratesfortransportofgoodsmaking industriesdifficulttosurvive.Government mustregulatethisandtakeactionagainst unionstokeepacheckonthem.

THREATFROMCHINESEIMPORTS

Marketisfloodedwith cheap importsfromchina. Govt supportismustelse cheapimportsfromChinawill killalltheindustries.