COVID-19 outbreak: To help India bounce back\, BJP suggests manufacturing policy changes

COVID-19 outbreak: To help India bounce back, BJP suggests manufacturing policy changes

According to Gopal Krishna Agarwal, BJP spokesperson for economic affairs, the government's response has been positive and it is expected to take proactive measures.

Written by Liz Mathew | Updated: April 24, 2020 8:12:17 am
coronavirus, coronavirus news, coronavirus impact on manufacturing sector, manufacturing sector covid 19, covid 19 tracker, covid 19 india tracker, manufacturing policy, manufacturing sector breakdown, Indian express Addressing his council of ministers earlier this month, Prime Minister Narendra Modi had said “there could be a plan to open up the districts which are not identified as hotspots”. (File Photo/Representational)

In order to help India to bounce back from the economic slump in the wake of the COVID-19 outbreak and the lockdown, the ruling BJP has suggested major long-term changes in the country’s manufacturing policy. These include proposals to lower the cost of production, land price, easing of labour laws and simplifying contract enforcement provisions.

The suggestions, based on consultations with economists, industrialists, representatives from MSME sector and representatives from digital platforms, have been submitted to the government, said Gopal Krishna Agarwal, BJP spokesperson for economic affairs. The consultations were coordinated by Agarwal, as directed by BJP president J P Nadda and general secretary (organisation) B L Santosh.

“The consultations concluded that there is an opportunity for India in the post COVID-19 world as many countries would prefer to see India as a manufacturing hub. All the stakeholders were of the view that India should utilise the opportunity effectively,”Agarwal told The Indian Express.

“There needs to be long-term changes in the manufacturing policy. Cost of production should be brought down for which there has to be changes in the power rates and tax compliance laws. Cost of the land should be brought down for the manufacturing units, labour issues including laws should be tweaked, changes in the contract enforcement costs, etc are some of the suggestions,” the BJP leader said.

According to Agarwal, the government’s response has been positive and it is expected to take proactive measures.

Addressing his council of ministers earlier this month, Prime Minister Narendra Modi had said “there could be a plan to open up the districts which are not identified as hotspots”. The Prime Minister also wanted “resumption of activities in the manufacturing sector, especially those for export”. He had also said that the crisis in the wake of coronavirus and the lockdown could be “turned into an opportunity for us to find new areas of export and new countries”.

Another significant part of the consultations was discussions held with digital experts and stakeholders for building state capacity, an aspect the Prime Minister has been keen on. BJP leaders said the Prime Minister insists on the extensive use of technology for delivery mechanisms when it comes to the government’s programmes.

The party has submitted suggestions to improve National Data Sharing and Accessibility Policy, calendar of release of data and data philanthropy. “The stakeholders were of the view that the involvement of the private sector should be more in the usage of artificial intelligence and big data in improving the state capacity,”Agarwal said.

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Meanwhile, RSS affiliate Bharatiya Kisan Sangh (BKS) wanted the central and the state governments to ensure that decisions to relax restrictions for the farm sector are implemented effectively on the ground. Pointing out that many district authorities are creating “hurdles” for transportation of farm materials, BKS asked the government to take measures to see that government orders are enforced effectively. “There are many hurdles for the farmers on the ground. Transportation is terrible. We appealed to the government to see that the orders are implemented,” Prabhakar Kelkar of BKS told The Indian Express.

“The governments should also see that the farmers get the minimum support price they have been assured for their produce.There are payment issues at many places. The other issue is with perishable items like milk. Dairy farmers are not able to sell their products because procurement is not taking place despite promise from the government. What can the farmers do? We have to resolve this issue,” Kelkar said, adding that there should be monitoring committees on the ground to see to it that advisories are implemented effectively.