Government policies can result in slowing manufacturing and making it non-competitive. They can encourage unethical management practices. This is apparent from the outcome of industrial policies framed after 1950. The abolition of the licence and control system in 1991, along with the creation of conditions to facilitate competition, brought about some positive change. However, it was only after 2014 that the government implemented policies that removed most of the obstacles to competitive manufacturing. The ease of doing business programme, introduction of GST (Goods & Services Tax), trusting the private sector to lead manufacturing growth, fiscal prudence and several other reforms have created a favourable environment for the growth of manufacturing activity. The budget of 2024 carries forward this objective.
While government policies can determine whether manufacturing can flourish or not, they cannot actually result in accelerating manufacturing growth. The pace of growth would always be determined by the actions of companies. Companies where managements are solely committed to the growth of their companies perform much better than companies whose assets and resources are treated as the personal property of the promoter. Siphoning money from the company significantly weakens growth and competitiveness by reducing the capability to make investments in R&D and expansion. Manufacturing growth in India has been adversely affected due to undesirable management practices developed prior to 1991. That largely explains why the contribution of manufacturing to GDP remains under 16 per cent.
Diese Geschichte stammt aus der August 26, 2024-Ausgabe von India Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der August 26, 2024-Ausgabe von India Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Screaming Success
Now Funny, Now Scary, This Genre Has Come Of Age In Hindi Cinema, Pulling In Audiences And Monster Returns At The Box Office
KING OF FRUITS
Sopan Joshi's Mangifera indica: A Biography of the Mango is an immersive, behind-the-scenes look at the world's most delicious fruit
HAVING THE LAST WORD
Writer, politician and wordsmith Shashi Tharoor is out with a book of essays celebrating the magical world of words
Indian Encore
The legendary tenor Plácido Domingo will be in Mumbai with the opera competition Operalia, which makes its debut in India
Charismatic Cat
Peppered with stunning illustrations, Caracal: An Intimate History of a Mysterious Cat is a deeply moving and meticulously researched account of the elusive felid
BETTER LATE THAN NEVER
After a pandemic-induced hiatus, actor Sharvari is riding high with several back-to-back releases-from Munjya to Maharaj and Vedaa
Trial by Fire
Hounded by allegations of conflict of interest in the Adani probe and rising discontent among her own staff, the Sebi chief has much to answer for-and disclose
WE WILL ROCK YOU
India's winter concert season is looking great, with leading international stars and bands set to captivate audiences
PK WALKS THE BIG POLL TALK
Prashant Kishor, the ace of the backroom, joins the battle for Bihar with lofty ambitions. Can his armoury of new ideas upset the old equations?
LORD of the ROLES
VIKKANT MASSEY is nothing if not versatile, straddling the worlds of independent and commercial cinema with élan