The government has announced a spate of policy measures to put
the economy back on the growth path. The measures and intent to encourage
manufacturing in the country is however the most publicized and discussed about
policy initiative. It is a clear departure from the extant policy of global
cooperation and using bilateral and multilateral trade agreements to benefit from
the resources and manufacturing prowess of partner countries ,
So far, we have not seen a comprehensive policy framework for
the policy initiative. The basic principle of management would guide that to
execute such a major policy intuitive, which may have significant impact on the
lives of 140cr people, the planners must first lay down a detailed conceptual
framework, which defines in very unambiguous terms, at least the following:
(a) The need for such
policy initiative; especially the circumstances that have necessaitated the
significant change in the policy direction and intent;
(b) The objectives of the
proposed policy initiative, especially specifying how the various stakeholders
would specifically benefit fro the change;
(c) The deliverable goals
of the policy initiatives, clearly defining the quantitative and qualitative
target and timeframe for achieving the specified targets;
(d) Strategy to meet the
objectives and goals, clearly defining the legal, regulatory, administrative,
procedural, social and behavioral changes that would be prerequisite and/or
desirable for achieving the objectives and goals of the policy initiatives; how
the government proposes to implement these changes and what could be the
hindrances in implementing these changes, etc.
(e) The programs that
would be implemented for achieving the objectives & goals; the budget for
these programs, executing and controlling authorities and review mechanism;
(f) The cost and benefit
analysis of the proposed policy shift; specifically outlining the exit
conditions and costs should the changes are found to be not working as planned.
The incumbent government had initially proposed the policy
change to promote local manufacturing under its "Make in India"
initiative in 2014. In six years, the government has not presented any
comprehensive conceptual framework for it; though the NITI Aayog has issued
some broad vision documents. There have been many scattered efforts to
encourage investment in manufacturing sector, ) most prominent being the restructuring
of corporate tax rates), and cluster development; we have not seen any a
coordinated effort that would be usually needed for such a massive policy
paradigm shift. To the contrary there have been many disparate actions by
different organs of the government, defeating the very purpose of the policy
itself.
The recently issued draft directive to ban production, transport
sale and import of 27 popular agro chemicals is just one point in case.
Significant capacities for these chemicals have been built in past few years
only. The totally arbitrary decision to suddenly put a blanket ban on these
products does not augur well for the policy intent of the government.
Similarly, recently a circular was issued to ban sale of 1026 products which
are imported in Semi Knocked Unit (SKU) condition in the police and para
military canteens. The circular was withdrawn in couple of days. Apparently,
two departments of the same ministry were not talking to each other on
important policy issue.
Various organs of the government are giving different
explanation of the policy intent itself. "make in India"; "Make
for India", Make in India for the World", Self Reliance";
"India as a hub of Global Supply Chain" are some of the popular connotations.
This does not show that we are going to have a paradigm shift in policy; may be
just few bits and pieces here and there.
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