Post independence, our polices are more in favour of encouragement to marketing than manufacturing. The country has to face very serious effect on Foreign Exchange, Balance of payments and more dependence on foreign countries for continued support.
This situation has to be changed to overcome pressure on foreign exchange and to overcome balance of payments problem. There is a need of encouragement to both the sectors of wealth creators of Industry and Agriculture. Both sectors creates wealth, solves employment issues, assures self dependency etc.,
Every Industry needs support from the Govt. in terms of relaxation and clear guidelines to be followed and financial support from financial institutions in addition to their own technical expertise and management skills.
Every Industry has to see commercial viability in the form of higher productivity, financial resources, human resources, raw materials, marketing, storage facilities and realization of sale proceeds. Also the Industry has to see the prospects for up -gradation in the competitive markets and to be forerunner in the creativity. More compliance free in transportation of raw materials, utilization of human resources, raw materials, environmental issues, infrastructure development etc.,
Every Industry also needs to special encouragement and support from the Fiancial Insitutitons in the form of continued support in the delay in realization of sale proceeds, gap between the production and sale, procurement of raw materials and converting as finished goods, investments in the forms of building, machinery, infrastructure and make the industry ready to operate. In this process, the Industrialists expect more time for repayment of loan installments when compared to marketing and trading sectors.
Every manufacturing organization has to comply many procedures and follow the same continuously. Some of the compliances are:
THE LEGAL COMPLIANCES REQUIRED:
1. Industrial Dept.
2. Municipality and Local authority.
3. Revenue Dept.
4. Pollution Dept.
5. Fire Safety measures,
6. Law Order
7. Labour Laws.
8. Central Excise.
9. Customs (International Trade),
10. FEMA (Foreign funds, International Trade),
11. VAT.
12. Service tax
13. Profession Tax
14. Income Tax, TDS,
15. Companies Act./ Partnership Act
16. Negotiable Instruments Act
9. ISSUES NOT CONSIDERED:
However SME sector was expecting simplification of the laws to make them more business-friendly. The sector has also requested for a stable policy, regulatory environment, appropriate incentives and tax-breaks to promote exports and would offset high transaction costs
However, the demand to raise excise tax (production up to Rs 1.5 crore) and service tax (Rs 10 lakh) limits for MSME players has not been accepted. “The limits are unchanged for about 7 years. The price of raw materials, fuels and cost of wages have risen many times since then”.
Now we have to see what action required:
11. STEPS REQUIRED:
1. Divert Household savings from gold into financial instruments.
2. Continued focus on infrastructure power, land, buildings, Finance, Labour issues, Pollution Issues.
3. Clusters Development.
4. Combined efforts as single group.
5. Planned, Supportive Advisors.
6. Financial, Management with self Discipline.
7. Associations Role for obtaining International funds, Technology.
8. Request for diverting the Power, Finance from unproductive areas to productive areas like Industry, Agriculture, Education, and Infrastructure Development.
K.HANMANDLOO,
B.Com, LL.B., F.C.A.
Convenor : Investors Cell,
BJP, Andhra Pradesh,
HYDERABAD.
