FICCI bats for Indian mfg units; suggests fiscal measures for SMEs
Updated: May 16, 2013 04:32:37pm
New Delhi, May 16 (KNN) The Federation of Indian Chambers of Commerce and Industry (FICCI) has sought wide-ranging fiscal and policy support from the government for incentivizing adoption of quality systems in Indian manufacturing units.
FICCI expressing its concern about the quality movement in Indian manufacturing said that it has not yet scaled up to the extent it should have owing to lack of resources and also due to lack of awareness. Moreover, in the small scale sector, it is difficult to dedicate financial and manpower resources to quality initiatives, it added.
The industry body has suggested a few measures for the consideration of government to support and encourage small scale industries enterprises to adopt best practices and achieve world standards in quality management.
“Fiscal incentives as is the case in R&D for expenses incurred on implementing Quality Management Systems in factories; this could be in the form of 150 per cent weighted deduction for expenses incurred in that regard. Partial to full reimbursement of the cost of implementation and obtaining third party certifications for internationally accepted quality standards,” FICCI suggested.
Furthermore, FICCI pointed out that small scale units were in dire need of adopting Quality Management Systems, although they do not have the resources to make initial investments.
“Government should support Industry bodies (as has been the case in Japan) to implement specific programmes for adoption of practical tools that are relevant for small scale industry,” FICCI proposed.
“National Standards should be revisited for better alignment with international standards to enable global competitiveness of Indian manufacturing,” it added.
The Industry body also advocated for the Institutionalization of Quality related Awards with cash incentive, regular programmes at academic and technical institutes for quality management and vocational courses for semi-skilled workers at subsidized rates.
Speaking at FICCI’s conference on ‘Sustainable Manufacturing Growth Through Quality Systems’, Secretary of the Department of Industrial Policy and Promotion Saurabh Chandra has urged the industry to set and adhere to mandatory quality norms that match international standards as also check the import of sub-standard items.
“This is vital as manufacturing is the core of the industrial economy and has the potential to create 100 million jobs and raise its contribution to GDP from 16 per cent to 25 per cent by 2025,” he added.
Chandra also emphasized the need for greater focus on high-end technology, high standards of quality, depth in manufacturing, research, development and production.
The need of the hour is to incentivize and motivate companies to build products and provide services of highest standards, he added.
Head of the Corporate Affairs, Maruti Suzuki Rahul Bharti said, “The trade policy should encourage investments not imports. Allow Indian SMEs to achieve global economies of scale, which will make them globally competitive and give market access only against investment commitment in India.”
Meanwhile, Chairman, FICCI Manufacturing Committee and MD, Hindustan Tin Works Ltd, Sanjay Bhatia, said, “The recent figures of IIP are highly disappointing as manufacturing sector barely managed to grow above one per cent in 2012-13. It is the manufacturing sector which has lifted millions out of poverty in other emerging markets like China, Thailand and South Korea. Growth in manufacturing can provide employment to millions of our youth and also the large population shifting from agriculture to non-agriculture sector. Our demographic dividend cannot be reaped if manufacturing does not grow in this country,” he emphasized.
FICCI also announced its ‘Quality Systems Excellence Awards for 2012’ which were presented to nine manufacturing units in India under the categories of large, medium and small units.
As many as 79 manufacturers applied for these awards from 12 broad sectors of manufacturing i.e. automotive, cement, steel, engineering, electronics, chemicals, FMCG, tyres, paper, refinery, food and textiles.
Some of the manufacturing units which received awards were Apollo Tyres, Chennai Plant; Welspun’s Anjar Plant; Jubilant Life Science etc. (KNN)
FICCI expressing its concern about the quality movement in Indian manufacturing said that it has not yet scaled up to the extent it should have owing to lack of resources and also due to lack of awareness. Moreover, in the small scale sector, it is difficult to dedicate financial and manpower resources to quality initiatives, it added.
The industry body has suggested a few measures for the consideration of government to support and encourage small scale industries enterprises to adopt best practices and achieve world standards in quality management.
“Fiscal incentives as is the case in R&D for expenses incurred on implementing Quality Management Systems in factories; this could be in the form of 150 per cent weighted deduction for expenses incurred in that regard. Partial to full reimbursement of the cost of implementation and obtaining third party certifications for internationally accepted quality standards,” FICCI suggested.
Furthermore, FICCI pointed out that small scale units were in dire need of adopting Quality Management Systems, although they do not have the resources to make initial investments.
“Government should support Industry bodies (as has been the case in Japan) to implement specific programmes for adoption of practical tools that are relevant for small scale industry,” FICCI proposed.
“National Standards should be revisited for better alignment with international standards to enable global competitiveness of Indian manufacturing,” it added.
The Industry body also advocated for the Institutionalization of Quality related Awards with cash incentive, regular programmes at academic and technical institutes for quality management and vocational courses for semi-skilled workers at subsidized rates.
Speaking at FICCI’s conference on ‘Sustainable Manufacturing Growth Through Quality Systems’, Secretary of the Department of Industrial Policy and Promotion Saurabh Chandra has urged the industry to set and adhere to mandatory quality norms that match international standards as also check the import of sub-standard items.
“This is vital as manufacturing is the core of the industrial economy and has the potential to create 100 million jobs and raise its contribution to GDP from 16 per cent to 25 per cent by 2025,” he added.
Chandra also emphasized the need for greater focus on high-end technology, high standards of quality, depth in manufacturing, research, development and production.
The need of the hour is to incentivize and motivate companies to build products and provide services of highest standards, he added.
Head of the Corporate Affairs, Maruti Suzuki Rahul Bharti said, “The trade policy should encourage investments not imports. Allow Indian SMEs to achieve global economies of scale, which will make them globally competitive and give market access only against investment commitment in India.”
Meanwhile, Chairman, FICCI Manufacturing Committee and MD, Hindustan Tin Works Ltd, Sanjay Bhatia, said, “The recent figures of IIP are highly disappointing as manufacturing sector barely managed to grow above one per cent in 2012-13. It is the manufacturing sector which has lifted millions out of poverty in other emerging markets like China, Thailand and South Korea. Growth in manufacturing can provide employment to millions of our youth and also the large population shifting from agriculture to non-agriculture sector. Our demographic dividend cannot be reaped if manufacturing does not grow in this country,” he emphasized.
FICCI also announced its ‘Quality Systems Excellence Awards for 2012’ which were presented to nine manufacturing units in India under the categories of large, medium and small units.
As many as 79 manufacturers applied for these awards from 12 broad sectors of manufacturing i.e. automotive, cement, steel, engineering, electronics, chemicals, FMCG, tyres, paper, refinery, food and textiles.
Some of the manufacturing units which received awards were Apollo Tyres, Chennai Plant; Welspun’s Anjar Plant; Jubilant Life Science etc. (KNN)
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