<p>The Bharat Audyogik Vikas Yojana (BHAVYA), which was approved by the union cabinet recently to create 100 industrial clusters, is a timely intervention and is expected to give a boost to manufacturing activities in the country, said Nirmal Kumar Minda, President of the Associated Chambers of Commerce and Industry of India (Assocham). However, he believes that the best intended results of the initiative could be achieved if development and management of the industrial clusters remain in the hands of private players. In an interview with DH’s Gyanendra Keshri, Minda also touched upon the need for improved skilling, including behavioral and sector-specific training, to support India's industrial growth and export competitiveness. On the <a href="https://www.deccanherald.com/tags/west-asia">West Asia </a>conflict, he said the global economic growth would be much below the IMF’s projection of 3.3 per cent. Despite the challenges, India is likely to maintain its position as the fastest growing major economy.</p> <p><strong>What is your view on the plug-and-play industrial parks initiative announced by the government?</strong></p> <p>The Bharat Audyogik Vikas Yojana (BHAVYA) or plug-and-play industrial park is a very positive development for MSMEs and the overall economy. It comes with a substantial over Rs 33,000 crore of outlay. Countries like Japan, Vietnam and Indonesia have developed manufacturing through cluster models. In Europe, a similar system is available. Though details are yet to be released, we are hopeful that it will give a big boost to manufacturing in the country.</p> <p><strong>What should be the role of the private sector in the BHAVYA scheme?</strong></p> <p>Private sector should play the central role in development and management of the industrial clusters. The government's role should be to provide basic facilities like power, water, and gas up to the industrial park's boundary, while the internal management and development would be handled by private entities. The government should identify the land and let the private builders develop it. Industries can move in and start operations quickly, much like moving into a furnished apartment.</p><p>An agency within the industrial park could handle all necessary government permissions like factory licenses and labour licenses. There can be a dedicated agency to manage labour, including hiring and training and complying with labour laws. This will be very helpful for <a href="https://www.deccanherald.com/tags/msme">MSME</a>s, because they don't have resources to handle multiple things. Once other things are taken care of they can focus on their core businesses.</p> <p><strong>How will the ongoing conflict in West Asia impact the Indian economy?</strong></p> <p>The conflict is bound to have a substantial impact on the economy globally. The global economic growth this year is going to be much lower than the 3.3 per cent projection of the IMF. Multiple sectors are impacted. High oil prices have impacted industries. There is a big negative impact on tourism. So far as the Indian economy is concerned, I think we will maintain our position as the fastest growing major economies. This fiscal we are projected to grow at 7.6 per cent and next year over 7 per cent. Our growth is led by domestic consumption. Despite the geopolitical challenges, our exports have been doing well. Our overall exports have registered positive growth.</p>
<p>The Bharat Audyogik Vikas Yojana (BHAVYA), which was approved by the union cabinet recently to create 100 industrial clusters, is a timely intervention and is expected to give a boost to manufacturing activities in the country, said Nirmal Kumar Minda, President of the Associated Chambers of Commerce and Industry of India (Assocham). However, he believes that the best intended results of the initiative could be achieved if development and management of the industrial clusters remain in the hands of private players. In an interview with DH’s Gyanendra Keshri, Minda also touched upon the need for improved skilling, including behavioral and sector-specific training, to support India's industrial growth and export competitiveness. On the <a href="https://www.deccanherald.com/tags/west-asia">West Asia </a>conflict, he said the global economic growth would be much below the IMF’s projection of 3.3 per cent. Despite the challenges, India is likely to maintain its position as the fastest growing major economy.</p> <p><strong>What is your view on the plug-and-play industrial parks initiative announced by the government?</strong></p> <p>The Bharat Audyogik Vikas Yojana (BHAVYA) or plug-and-play industrial park is a very positive development for MSMEs and the overall economy. It comes with a substantial over Rs 33,000 crore of outlay. Countries like Japan, Vietnam and Indonesia have developed manufacturing through cluster models. In Europe, a similar system is available. Though details are yet to be released, we are hopeful that it will give a big boost to manufacturing in the country.</p> <p><strong>What should be the role of the private sector in the BHAVYA scheme?</strong></p> <p>Private sector should play the central role in development and management of the industrial clusters. The government's role should be to provide basic facilities like power, water, and gas up to the industrial park's boundary, while the internal management and development would be handled by private entities. The government should identify the land and let the private builders develop it. Industries can move in and start operations quickly, much like moving into a furnished apartment.</p><p>An agency within the industrial park could handle all necessary government permissions like factory licenses and labour licenses. There can be a dedicated agency to manage labour, including hiring and training and complying with labour laws. This will be very helpful for <a href="https://www.deccanherald.com/tags/msme">MSME</a>s, because they don't have resources to handle multiple things. Once other things are taken care of they can focus on their core businesses.</p> <p><strong>How will the ongoing conflict in West Asia impact the Indian economy?</strong></p> <p>The conflict is bound to have a substantial impact on the economy globally. The global economic growth this year is going to be much lower than the 3.3 per cent projection of the IMF. Multiple sectors are impacted. High oil prices have impacted industries. There is a big negative impact on tourism. So far as the Indian economy is concerned, I think we will maintain our position as the fastest growing major economies. This fiscal we are projected to grow at 7.6 per cent and next year over 7 per cent. Our growth is led by domestic consumption. Despite the geopolitical challenges, our exports have been doing well. Our overall exports have registered positive growth.</p>