Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Engines of manufacturing growth
Tue, 14 Feb Pre-Open

Sound manufacturing policy plays a key role in shaping up the growth prospects of any economy. A well set of framework or guidelines on the manufacturing front improves the output and trade balance (exports increase) of any nation. This in turn increases the national income. However, for India manufacturing has never been the engine for growth (manufacturing contributes 16% to the GDP). Being a heavily populated country, consumption takes that honor. However, if India has to continue its growth supremacy concrete steps have to be taken in improving the share of manufacturing output to the overall GDP.

Facilitation of growth in manufacturing needs an effective industrial policy. A sound industrial policy has a set of regulated guidelines that promote business confidence and increase competitiveness in the long run. And this comes through collaboration and learning. Ability to integrate these values in environmental ecosystem is a key challenge for the policy makers as collaboration is difficult in the Indian context (rigid bureaucracy) and learning comes over time/experience.

Further, there are many other areas like industrial relations, land acquisitions and employment issues which the policy makers should address in order to bolster the growth in the manufacturing sector.

Industrial relations will involve collaboration with state governments and employee unions. Land acquisition issues involve dealing with bureaucracy and civil society (environmentalists). Further, in order to bolster manufacturing output pecuniary benefits (tax advantages) to corporates for starting up manufacturing zones should not be restricted to Special Economic Zones (SEZs). Thus, it appears that the quantum of manufacturing output is directly correlated with the industrial policy framework. However, participation from the other stakeholders (state governments, civil society and concerned ministries) is equally important. Without collaboration from them implementation will become a major issue.

Thus, we believe integration amongst various stakeholders and implementation are key challenges for the manufacturing policy to steer the India growth story from here on. If the policy makers are able to address them, manufacturing could be our next engine of growth.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Engines of manufacturing growth". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.