The Planning Commission's new avatar (NITI Aayog) should take on the responsibility of championing the cause of the short-listed sectors. The best way to do that would be to create a two member full time team at the all India level for each sector, one representative from the government and one from the industry.
The government representative must be at a senior level; at least a Joint Secretary. A similar structure would be required in each State. So if there are 25 focus sectors, create that many teams who will reach out to all relevant stakeholders.
To understand this better, we can take a few sectors and see how this team could possibly operate. So if Food Processing requires change in Food Laws, repeal of APMC, dilution of Essential Commodities Act, updating warehousing regulation etc, then this team would work with all stakeholders and make it happen.
If Defense Production requires large land parcels, quicker decision making by Defense Ministry, further increase in FDI, then that group will make that happen. If Apparel sector requires improving quality of cotton grown, change in labour laws for women, skill training on modern stitching machines, common pollution control facilities at dying locations, then the apparel team will coordinate that effort.
These are examples to highlight the need to work across ministries and functions. Each team must understand and bench mark cost structures, and work towards reducing transaction costs. Sectoral blueprints should be prepared and time lines set for implementation.
There will certainly be some generic requirements such as good infrastructure, power availability that cuts across all sectors. So if high land cost makes a business unviable, then government land should be made available. If energy costs need to be lowered and private distribution can achieve it, allow that to happen.
A vibrant MSME sector is an essential element in manufacturing. Establishing a few large industries in each sector will serve as anchors that will provide the market and the technology for MSMEs.
Let me quote from the concluding remarks of the Deloitte study on manufacturing. "For any nation, advancing their manufacturing capabilities matters because it typically brings together a cadre of human talent with its investments in research and development.
This results in innovation, advancements of productivity and also creates demand for high level skills in other sectors that support manufacturing, such as banks, third party logistics, education, call centers, healthcare, etc.
It has been seen that nations and companies that fully outsource production, jeopardize their long-run economic well-being. These factors, in part, explain what is often not obvious: namely, how new era manufacturing supports country-level resiliency in turbulent times".
Finally continuing with existing norms or just tweaking them will not work. They haven't in the past, and as they say, if you do what you have always done, you will get the same results that you've always got!
Let's get our act together, let's create employment, let's use our youth and let's get millions out of poverty, the time starts now! The first lead will need to come from the Central Government for agreeing to the suggested framework, and I am confident that that industry will not be found wanting!
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