Six Mantras

The Agra Footwear Manufacturers and Exporters Chamber (AFMEC) acts as a sector catalyst in influencing policy decisions by creating an atmosphere of mutual awareness on issues of common interest. It achieves this by acting as a bridge that connects the various Government Agencies with the thought process of the Industry. In doing so it initiates appropriate strategic thinking at the Macro Level and attempts to streamline operational inefficiencies at the ground level. Its president Puran Dawar, a pro-active veteran of the shoe industry in India, shares some significant pointers on improving the manufacturing sectors.

- Puran Dawar

#1) Exclusive Manufacturing Sector Banking - at Libor + Bank Service Charge + Hedging

Manufacturing sector of India can’t be competitive as it can’t afford infrastructure, and therefore it can’t be scaled-up at the present interest rates.

We need to generate specific industrial funding on LIBOR + Bank Service + insurance of hedging risk.

This will take us to futuristic planning, scale, and risk taking appetite, which can lead India to manufacturing hub.

#2) Make in India Industrial Development Authority

Many of the state governments are offering land for industrial development to various industry organizations and export promotion councils. But it isn’t easy and immediately feasible to develop clusters by SPV’s. I suggest “Make in India Development Authority” to be established to create huge land bank:

▶ Utilize existing stock of land with state governments.

▶ Get state support agreement signed

▶ Develop these land parcels with the best of facilities including common facilities, training center infrastructure on PPP model.

▶ Offer to investors (Indian & Foreign), ready to use land on the basis of employment and size of investments.

▶ At the moment we really do not have anything to offer to investors. I being a part of some delegation on behalf of Council for Leather Exports faced such issues. No extra burden on govt, money allocated for Mega Clusters, Park Development may be utilized (MIIDA)

#3) Investment Allowance to Focus on Make in India Industries