Baba Kalyani, Chairman and MD of Bharat Forge and TV Narendran, CEO and MD of Tata Steel, who is also the President of CII, on Wednesday pointed out the problems faced by companies at the state and district level in facilitating business.
They hope that the Center and the States will come together more and negotiate to make the reality of doing business on the ground easier. The CII, local chambers of commerce and industry associations could be platforms for this dialogue, both leaders said.
Kalyani and Narendran were speaking at the first CII ‘Being Future Ready’ Business Summit. They were in talks with Soumitra Bhattacharya, Chairman of the CII National Committee, MNCs, Regional President of Bosch Group and Managing Director of Bosch.
“Delhi does not produce. It is conducted in the states and hence, there is a lot of ease in doing necessary business at the state level It is difficult to critically assess what is happening in the states. The number of regulations that the manufacturing industry had to face in each activity was very high, which could close down the business or make it unrivaled, ”said Kalyani.
He cited the fact that buying land for a factory has become costly with 20-25% of the cost of land being invested. This is because states change the valuation of land every year to increase stamp duty revenue. During Kalyani’s recent visit to Germany, the leaders of many companies told her that their past experience in India, despite its immense potential, was not encouraging.
Narendran called for healthy competition among the states and acknowledged that there are problems at the district and local level in doing business easily.
About 75% of the country’s production was concentrated in eight states. Kalyani praised Telangana for providing better process, approval system and manpower in 24 hours. But in other states the picture is reversed.
Bhattacharya suggested that the government should copy what it has done with the passport system. They should make the process transparent, non-categorical and predictable and call on the states to come forward for a general dialogue between the CII, the states and the center. Instead of creating a marketing pitch for the states, they should work on single-window approvals, Bhattacharya suggested.
Kalyani says that in the next few years, Indian companies will start sending out a lot of people to run factories around the world as these places address the talent shortage. He sees a new wave of digital talent pool building in the country and believes that this talent will work not only in the Indian manufacturing industry, but also outside India.