Manufacturing holds the key for new govt: Ajay Shriram

Business Today spoke to Ajay Shriram, Chairman and Senior MD, DCM Shriram, on what should be on the agenda of the new government -

Manufacturing sector requires attention. The government already has a manufacturing policy. I think there's a need to ease the way businesses are done so that manufacturing becomes competitive in India. Today, our transaction costs are 12 per cent higher than other competing countries such as China, Thailand or the Philippines. So we need to work in this direction to make our manufacturing competitive.

 

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Within this, special focus has to be given to small and medium enterprises. That is the sector where there are much larger number of entrepreneurs who will generate jobs and create economic activity. So, the simplification of  processes and approvals has to be taken care by the new government.

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If I recollect correctly what Narendra Modi had stated in one of his speeches if you bring in one new law, you should remove 10. We are going to support him on that.

Another area is infrastructure sector.  We already have 6.5 lakh crore worth of projects approved by the Cabinet Committee on Investment (CCI). I believe 14 states have set up their own CCIs. If we can get this activity moving rapidly, it will give a major push to the economic growth.

Unfortunately, many public-private  partnership projects are not working properly. If we need $1 trillion of further investment in infrastructure over the next 5-7 years and they have to work on PPP model, we have to make them work. We are going to take up these areas with the government at the earliest possible opportunity.

 

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