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Pressing for timely implementation of the new manufacturing policy, which provides for easing of compliance obligations on the industry, CII on Sunday suggested a mechanism to monitor progress in this regard.
While lauding the initiatives for the micro, small and medium enterprises (MSMEs) in the National Manufacturing Policy (NMP), the chamber recommended a system for review of the results.
“The policy by itself will not deliver the desired result. To ensure effective implementation a ‘MSME focused’, manufacturing policy review mechanism will have to be instituted and a high-level committee chaired by Secretary, Department of Industrial Policy and Promotion... may monitor the implementation on a regular basis,” it said in a statement here.
The NMP was approved by the Cabinet on October 25, placing emphasis on rationalisation and simplification of business regulations, without requiring legislative amendments.
The NMP would provide adequate support to labour-intensive SMEs and ensure job creation. Special attention will be given in respect of textiles and garments, leather and footwear, gems and jewellery and food processing industries.
Inadequate access to adequate and timely finance, lack of financial information and difficulties in complying with regulatory requirements are the major challenges facing the MSMEs and the policy seeks to address them.
Specific measures such as stock exchange for small and medium enterprises (SMEs) will also help the sector, it said.
On statutory compliance issues, the NMP has observed that the compliance burden of laws and regulations is particularly severe on SMEs.
”...For instance, there are a number of payouts which a company has to make under the EPF Act, Employees Pension Scheme, ESI Act, Payment of Gratuity Act, Personal Injuries Act and Workman’s Compensation Act,” CII said.
The MSME sector accounts for about 45 per cent of the manufacturing output and 40 per cent of the total exports of the country.
The sector is estimated to employ about 60 million persons in over 26 million units throughout the country.
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