Business Today

A Quantum Miss

For the hype around India’s manufacturing prowess, its share in overall GDP is nothing to gloat about. Ever since the licence raj was dismantled, the expectation was the economy would prosper on the back of manufacturing. Yet, almost three decades since liberalisation, manufacturing continues to account for just around 16 per cent of GDP.

There are many impediments that hold the country back. Archaic labour laws, difficulties in acquiring large tracts of land for big projects, bureaucratic hurdles, procedural delays, a less-than-efficient dispute resolution mechanism and high power, logistics and capital costs are some of them.

Land, Labour and Logistics

“Reforms are required in the three Ls—labour, land and logistics. We need to take action to produce in a more cost efficient manner,” says D.K. Joshi, Chief Economist, Crisil. “We also need policy certainty to give more assurance to foreign investors. You require good infrastructure to attract investments.”

The scope for improvement is substantial. In 2019, the World Economic Forum, in its annual World Competitiveness Index, ranked India at 68, down

You’re reading a preview, subscribe to read more.

More from Business Today

Business Today4 min read
Watch that Wrist
Bulgari has once again set the world record for creating the thinnest watch on the planet with the Octo Finissimo Ultra COSC, which is 1.70 mm thick, even thinner than the 1.80 mm it had achieved in 2022. The new watch, limited to only 20 pieces, als
Business Today1 min read
Action And Reaction
1 The gold loans market has witnessed significant growth, with compound annual growth rate of 22.7% in the three years to FY23 2 The gold loans outstanding of banks and NBFCs was ₹6.1 lakh crore as of FY23, per a Nirmal Bang report 3 The average gros
Business Today4 min read
“I Let My Work Do The Talking”
IF DETAILS about the electoral bonds had not been made public, P.V. Krishna Reddy would have stayed under the radar for most Indians, despite managing a diversified ₹32,000-crore business. The attention makes the media-shy Reddy a little uncomfortabl

Related Books & Audiobooks