The ‘Make in India’ initiative of the Government is expected to gain high traction following the roll-out of the latest edition of the Business Reform Action Plan – BRAP 2024. The plan aims to boost manufacturing by focusing on improving the ease of doing business across the country, creating jobs and building Brand India.
The Prime Minister puts great store by transforming the country into a manufacturing powerhouse. This is sought to be achieved by streamlining regulations, reducing red tape, and simplifying compliance procedures. This will make it easier for manufacturing companies to set up and operate businesses without being bogged down by bureaucratic hurdles.
The onus will now be on the administration to ensure quicker approvals and clearances for businesses related to land acquisition, environmental assessments, and construction. The idea is to significantly reduce project delays and enhance the speed of industrial development.
While attracting investments is the avowed objective of the reforms by creating a more business-friendly environment to attract both domestic and foreign investments into India’s manufacturing sector, much will depend upon how rapidly the corporate sector adopts and adapts to new technologies.
It is also expected that by increasing the digitisation of Government services and introducing transparent online systems for licensing, taxation, and other business processes, there will be reduction in corruption and inefficiencies, which will benefit manufacturers.
BRAP 2024 is likely to focus on improving support for micro, small, and medium enterprises (MSMEs), the backbone of Indian manufacturing. This could include simplified tax regimes, better access to finance, and easier compliance.
Sector-specific reforms are also expected to be a key element of BRAP 2024. If industries such as electronics, textiles, pharmaceuticals, and automobiles receive targeted support, it is bound to boost growth and exports in these areas.
The good news is that the year 2022-23 witnessed growth in the manufacturing sector for the majority of economic parameters like invested capital, input, output, gross value added, employment and wages and it even surpassed the pre-pandemic level in absolute value terms. Time is ripe for the industry to seize the opportunities that lie ahead.
