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    Modi needs more than tax breaks to make India factory for the world

    Synopsis

    Lack of skilled workers, bureaucracy & inadequate road & port infrastructure key hurdles for investment.

    PTI
    A shortage of skilled workers, bureaucracy and lack of adequate road and port infrastructure are key impediments investors face in India
    By Vrishti Beniwal and Atul Prakash

    India needs to remove trade barriers and improve infrastructure if it wants to benefit from movement of supply chains from China, a former European trade commissioner said.

    “India is still driving along with its hand break on,” Peter Mandelson, Chairman of strategic advisory firm Global Counsel, said in an interview in New Delhi on Thursday. “If it doesn’t do enough, other countries such as Malaysia, Indonesia and Vietnam will take advantage of this switch, leaving India behind.”

    A shortage of skilled workers, bureaucracy and lack of adequate road and port infrastructure are key impediments investors face in India, he added. The south Asian nation needs to liberalize its trade, particularly on e-commerce, and “exploit the export potential” being offered by China-led Regional Comprehensive Economic Partnership.

    India has so far lost out to the southeast Asian economies in attracting investments as companies look for new manufacturing destinations to skirt tariffs in the trade war between China and the U.S.

    Prime Minister Narendra Modi has reduced corporate tax rates to one of the lowest in the region with an aim to make India a manufacturing hub. That’s a “smart move”, Mandelson said, but “insufficient” to attract investors as rivals are offering a “better base for production”.

    Modi’s overhaul of archaic bankruptcy laws improved India’s position in the World Bank’s latest rankings for doing business. The $2.6 trillion economy jumped 14 places to 63rd spot, but still lags behind competitors in staring a business, registering property, and enforcing contracts.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    55 Comments on this Story

    Valerian Pereira338 days ago
    Releases the Hand brakes.
    Open up the economy.
    work like the Chinese did since the ''70s.
    let there be Micro, small, medium, Large industries pan India ..
    clearly build up zoning of Industrial belts, corridors, Belts and REDUCE tax.
    Let entrepreneirsips flourish,, self employment boom..
    Land price should be min but stable.
    No more Labor strikes...
    work for 300 days a year at min 10 hours of dedicated hard work.
    Plan your families..
    adopt scientific methods. Let Rural, villages flourish with Lush greenery and Green covers full of Oxygen .. pure, fresh AIR
    Invite the Japanese: Koreans: Scandinavians: Europeans: Israelis: Americans: to bring in their Technologies...
    for mass production india.
    let every one of us join the military for multi-tasking, skill developt above all.to be proud Indian with 100% Discipline and perfect Quality and precision. with FINESSE
    yes, we can.
    S shah339 days ago
    Skilled manpower India will catch up very fast -
    Singh339 days ago
    Infrastructure, skilled labor is a necessity but also removal of corrupt bureaucrats who are an impediment to progress. Lack of investment in research and innovation by the private sector is another impediment. Instead of the Central government the State governments should take steps to increase investments in infrastructure, ports, education, research and innovation.
    The Economic Times