Winding up of National Manufacturing Competitiveness Council

Winding up of National Manufacturing Competitiveness Council
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for winding up of National Manufacturing Competitiveness Council (NMCC) with immediate effect as the Council has fulfilled the mandate for which it was constituted.

The NMCC was established in 2004 as a part of the Common Minimum Programme (CMP) of erstwhile government to provide a continuing forum for policy dialogue to energize and sustain the growth of manufacturing industry. It was set up as an autonomous organization with its Chairman in the rank of a Cabinet Minister and members from Government and Industry. Dr. V. Krishnamurthy, the former Chairman of the Council resigned from the post on 28th May, 2014 and Shri Ajay Shankar, IAS (Retd.) demitted office as Member-Secretary of the Council upon expiry of his tenure on 22nd November, 2014. In the absence of a Chairman and no fresh constitution, the NMCC has become non-functional.

Further, since its inception in 2004, NMCC conducted various studies independently in consultation with several Government Ministries/Departments and also industry association, and shared these studies/reports with the Ministries/Departments concerned during the decade of its functioning.

Steps to Address Obstacles Under'startup India' Mission

                        Local Circles is a social media site which keeps conducting informal surveys on various issues.  Government policies cannot be framed on the basis of such informal surveys.  The Government, however, has identified regulatory reforms which aim at reducing inefficiencies and corruption as its top most priority.

                        A number of steps have been taken by the Government to address these obstacles.  An Action plan has been released by the Prime Minister of India on 16th January, 2016 which includes:-

1.                  Simplification and Handholding
·                     Simple Compliance Regime for startups  based on Self-certification
·                     Launch of Mobile app and Portal for compliance and information exchange
·                     Startup India Hub to handhold startup during various phases of its development
·                     Legal support for and fast-tracking patent examination at reduced costs
·                     Relaxed norms of public procurement for startups
·                     Faster exit for startups

2.                  Funding support and Incentives
·                     Providing funding support through a Fund of Funds with a corpus of rupees 10,000 crore
·                     Credit guarantee fund for startups
·                     Tax exemption on capital gains invested in Fund of Funds
·                     Tax exemption to startups for 3 years

3.                  Industry-Academia Partnership and Incubation
·                     Organizing Startup Fests to showcase innovations and providing  collaboration platforms
·                     Launch of Atal Innovation Mission (AIM) with Self –Employment and Talent Utilization (SETU) Program of NITI Aayog
·                     Harnessing private sector expertise for setuping up incubators
·                     Setting up of 7 new research parks modeled on the Research Park at IIT Madras
·                     Launching of innovation focused programs for students.
·                     Annual Incubator Grand Challenge to promote good practices among incubators.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. NirmalaSitharaman in a written reply in Rajya Sabha today.
Economic Relief to Commerce and Industry Sectors
Economic relief is being provided to the industry and commerce sector in the form of special tax rates, exemptions, rebates, deductions, deferrals, credits etc. Relief to industries from direct tax is provided through measures like accelerated depreciation, deduction /weighted deduction for expenditure on scientific research, on schemes for the social and economic uplift of the public, to charitable trusts and institutions, for undertakings engaged in development of infrastructure facilities, development of SEZs and Industrial parks, providing telecommunication services, generation, transmission and distribution of power, revival of power plant, production of mineral oil and natural gas, housing projects, operating a cold chain facility, business of handling, storage and transportation of food grains, processing, preservation and packaging of fruits and vegetables, hospitals in rural hospitals, collecting and processing of bio-degradable waste, employment of new workmen, offshore banking units etc. Relief is also provided for industrial undertakings located in Jammu & Kashmir, North Eastern States, Sikkim, Uttaranchal, Himachal Pradesh and other industrially backward districts. Excise and custom duty relief is provided to all major industrial sectors including crude oil, machinery, edible oils, diamond & gold, primary metals, chemical, plastics, textiles, fertilizers etc among others. Various export promotion schemes including the Duty Free Entitlement Credit Certificate, Target Plus, VisheshKrishi and Gram UdyogYojana, Focus Market/Product, other exemption or input tax neutralization provide relief to exporters.

Economic relief are provided in accordance with certain policy priorities of the government and to achieve targeted outcomes. The objectives include inter alia encouraging savings and capital investment in the economy, balanced regional development, promoting social equity, creation of infrastructure facilities, employment generation, rural development, industrial development, promoting skill development and entrepreneurship, research and development, cooperative sector, domestic manufacturing and provide a level playing field for Indian exports in the international markets. Relief is also provided in an area based approach to promote industry and commerce in identified backward areas.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. NirmalaSitharaman in a written reply in Rajya Sabha today.

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