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- In order to become self-reliant, it is essential to concentrate on our manufacturing sector for which providing skill orientation is the need of the hour to improve the quality of the products. For example, the automobile industry which has been almost indigenised during the recent past and urged other sectors also to follow its path.
- The central government has already laid the road for a resurgence after the covid 19 pandemic slow down and the implementation is good.
- The pandemic had learnt how to run our industries despite difficulties. Though India has enough potential in the manufacturing sector it needs infrastructural technological and skill-oriented support to achieve the target.
- Despite various challenges, the pandemic has given a huge number of opportunities all over the country. The hesitation to buy local products among consumers and the preference for branded and quality products is no longer prevailing, as their attitudes have changed now.
- Many sectors including MSME (Micro Small Medium Enterprises) are adapting to the new normal.
What is Vocal for Local?
- Vocal for local does not mean that we should stop buying products which are manufactured in other countries or stop our import.
- It means that we have to give sufficient importance to the local markets and protect our local economy in such a way that we can be self-sufficient.
How Make in India Initiative and Vocal for Local are Linked?
- ‘Make in India’, is an initiative launched on 25th September 2014, a major national programme of the Government of India designed to facilitate investment, foster innovation, build best in class infrastructure, and make India a hub for manufacturing, design, and innovation.
- The development of a robust manufacturing sector continues to be a key priority of the Government. It was one of the unique ‘Vocal for Local’ initiatives that promoted India’s manufacturing domain to the world.
- ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship.
- The manufacturing sector has the potential to not only take economic growth to a higher trajectory but also to provide employment to a large pool of our young labour force.
What is Production Linked Incentive Scheme(PLI)?
- PLI is an old and popular tool with governments to spur the production of goods that the country sees as necessary for social good, taxes, or employment-generation reasons.
- PLIs are essentially the incentives to companies to boost products. They could be in the form of tax rebates, import and export duty concessions, or maybe easier land-acquisition terms. Generally, the benefits of a PLI scheme are passed on to the final consumers of the goods in terms of lower prices.
- Take the example of electric vehicles. They don’t have ready demand but a shift to greener automobiles is essential for the country.
- In this regard, the government has what is called the FAME scheme. It stands for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles. Under this scheme are a whole lot of concessions for EV makers.
Steps by Government to promote ‘Vocal for Local’ and for Boosting Industrial Manufacturing
The government takes various initiatives to boost Industrial Manufacturing. The steps taken by Government to uplift the startups and to promote the ‘vocal for local’ campaign are as under:
- The government of India has extended relaxations on prior experience, prior turnover and earnest money deposit as per the provisions of GFR to ease public procurement from startups.
- The government of India has taken up the Fund of Funds for Startups (FFS) Scheme and Startup India Seed Fund Scheme (SISFS) to uplift the startups in the country.
- The objectives of the Fund of Funds scheme include accelerating innovation-driven entrepreneurship and business creation, mobilizing larger equity-like resources for startups.
- The SISFS aims to provide financial assistance to startups for proof of concept, prototype development, product trails, market entry and commercialization.
- Other steps:
1. Compliance Regime based on Self-certification
2. Startup India Hub
3. Startup India Portal and Mobile App
4. Legal Support and Fast-tracking Patent Examination at Lower Costs
5. Relaxed Norms of Public Procurement for Startups
6. Faster Exit for Startups
7. Funding Support through a Fund of Funds
8. Credit Guarantee Fund for Startups
9. Tax Exemption on Capital Gains
10. Tax Exemption to Startups for 3 years
11. Tax Exemption on Investments above Fair Market Value
12. Organizing Startup Fests for Showcasing Innovation and Providing a Collaboration Platform
13. Launch of Atal Innovation Mission (AIM) with Self-Employment and Talent Utilization (SETU) Program
14. Participation of States in Strengthening Startup Ecosystems
15. Grand Challenges
16. Encouraging Women Entrepreneurship
17. National Startup Awards
19. Seed Fund
20. Investment Support for startups (Priority Sector lending)
Now, for almost three decades India is on a steady growth trajectory and is aiming to become a five trillion economy. To achieve this milestone, India has to put emphasis on its manufacturing sector and expand its consumer base with locally produced and manufactured goods. Initiatives of the current government like AatmaNirbhar Bharat and ‘Vocal for Local’ have a very vital role to fulfil India’s dream. It’s a duty of every citizen of this country to give their best to achieve it.