3 R D A N N U A L K A R N ATA K A M A N U FA C T U R I N G S U M M I T M A K I N G M A N U F A C T U R I N G C O M P E T I T I V E : P O L I C Y A N D B E Y O N D

TWEAKING POLICY INITIATIVES TO BOOST MANUFACTURING COMPETITIVENESS

© Browne & Mohan, 2014

Dr TR Madan Mohan

Managing Partner

Policy tweaks

Procurement policies, shift away from tender to need based, whole-of-life instead of L1

Creating a mechanism for offset in defence and public procurement

Defence offset deemed as exports, MOD and DGFT can coordinate to implement the scheme

From MSME perspective, CGSTME grants must be increased to 2 crores

Tax deferrals for companies in advanced manufacturing Special incentives for socially backward entrepreneurs Skills development, women participation and Cohort programs Taxes on used machinery and remanufactured machinery Lean manufacturing, productivity improvement and quality

improvement credits

© Browne & Mohan, 2014

Policy tweaks

Accelerated scale-up program for machine tools industry

Anchor industries policies need to go beyond two industries, must look at technological competitiveness of entrant

Anchor unit policy for defence/Aerospace should look go beyond scale and identify Innovation potential (<100 Cr..100 employees limit must be explored).

Incentives for setting up units in Auto sector

NSDC & State coordinated initiatives to develop skills for auto, machine tool & machinery sector.

Agro food sector

© Browne & Mohan, 2014