8/2/2019 Sos From Manufacturing in India

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SOS FROM MANUFACTURINGINDUSTRYININDIA

WWW.cosro.org

http://www.cosro.org/http://www.cosro.org/

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INDUSTRIESDILEMA TheTelecomandalliedindustries

in manufacturing isclosetocrash unlessspecialincentiveandsupporttomanufacturingisprovided byGovernment.

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PROBLEMS&PROBLEMS ExceptMNCs mostofSMEandfeedingindustries

alloverIndia areabouttoclose dueto1. highbankinterestrates,2. poorlaborlaws,3. unreasonable demandsofIncomeTaxofficers to

completetheir annual targets ,4. increaseinexciseduty and5. servicetax,6. withdrawalof specialincentivesfromeconomic

zoneslikeBaddi inHimachalandmanyzones inUttarakhand .

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DISMISAL STATUS A visitto mostofindustrialzonesallover Indiawhetherit

isspecialeconomic zonein Baddi ,or normalindustrialareainsayFaridabador Udyog vihar inGurgaon or Kondliindustrialareawillrevealthatmorethan60%factoriesareclosedorabandoned or beingconvertedto BPO multistoreyed offices withnodemandinsight.Mostofnewdevelopedmultistoreyed officesmadebybuilders arevacant asBPObusinesshasfallendrastically.

4Already

IT

and

BPO

industry

except

in

hands

of

MNCs

arealsofacingthreatof discomfortand manpowercut.

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SUPPORT FROMGOVERNEMENT UnlesstheGovt supports all

theseindustrieswillclose,creating unemploymentandunrestinsocietywhichmeansmorecrimes.

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8/2/2019 Sos From Manufacturing in India

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BANKINGSUPPORT Reduce BankInterestandpenaltieson CC

accounts.Give

more

time

at

least

by

one

year

to

willingindustrieswhoseaccountshave beendeclaredNP tonormalize.Therearemanysuchentrepreneurs

whose

accounts

are

declared

NP

dueto losses inTelecom andalliedindustriesandareatpointofclosure.

Makeliberalpoliciesforrestructuringofoutstandingloansof entrepreneurssothattheycanrecoverfromexistinglowinbusiness.

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INCOMETAXDEPARTMENTANDSPECIALECONOMIC ZONES

ManyIT officers haveslappedheavypenaltiestoalreadyailingentrepreneursandindustries ononenoncomplianceorother.Such

cases

should

be

reviewed

and

genuine

cases

should

be

supportediftheyareatpointofclosure.

ThusmanyindustrieslocatedinSEZ or specialweakareaswhereITconcessions

are

given

,policies

should

be

to

encourage

industries

to

growandnotslap heavypenalties.Therearecaseswhere100%manufacturingintheseareasarenotpossiblebutcoreproductisproducedatfactory,butIT officeshaveslappedheavypenaltiesforaccessorieswhicharenotproducedlocallybut goalongwithmainproductandhenceapartof manufacturing.Such Telecomindustriesare alsoatpointofclosuredueto wrongassessmentbyIT offices.Such industriesmustbesupported sothattheycansurvive.

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LABOURLAWS Labor laws shouldbe madeliberal.Hireand

fireshouldbelinkedwithperformance andproductivityofemployeesevenfor unskilledworkers.Iftheindustryisreducingmanpowerduetolowbusiness,labor officemustsupport and donotallowlocallaborunionstoexploitbywayofunreasonablecompensationdemands.

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LOCALTRANSPORTERSUNION Localtransportersmakeunionandcharge

high rates fortransportofgoodsmakingindustries difficulttosurvive.Governmentmustregulatethisandtakeactionagainstunionstokeepacheckonthem.

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THREATFROMCHINESEIMPORTS Marketisfloodedwith cheap

importsfromchina. Govt supportismustelse

cheapimportsfromChinawillkillalltheindustries.

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