A discussion with Jitin Prasada, on improving ease of doing business, enhancing logistics, and supporting local industries through initiatives like the Investor-Friendly Index and PLI schemes
The Goa Chamber of Commerce and Industry recently hosted Jitin Prasada, Minister of State for Electronics & IT, Commerce and Industry, Government of India. A discussion was held with Shrinivas Dempo, President of GCCI and Nitin Kuncolienker, Chairman, Advisory Council and Mentor of Manufacturers Association for Information Technology (MAIT). Damu Naik, State President of the Bharatiya Janata Party (BJP) was also present at the discussion.
Investor Friendly Index
Shrinivas Dempo: In the recent budget, I noticed the introduction of an investor-friendly index for states, which I believe could be a great initiative to attract investments. Given that Goa is a relatively small state with lower population density and per capita income, along with a reliance on certain traditional industries, what advice would you offer to the Goan industry to improve its standing on this investor-friendly index? How can we position ourselves as an attractive investment destination and reduce dependence on government funding and foreign direct investments (FDI)?
Jitin Prasada: The recent rollout of the investor-friendly index by the Commerce Ministry includes a grading system that evaluates the Ease of Doing Business (EoDB) across states. This system assesses the reforms implemented by each state, such as simplifying procedures and eliminating outdated practices. EoDB remains a top priority, as the faster we adapt to these changes, the better it will be for any state. In addition to fostering domestic investment, attracting international business is equally crucial.
I recently had the opportunity to meet with a Swiss delegation, and they highlighted how certain states have capitalized on investment opportunities by embracing change, streamlining processes, ensuring transparency, and maintaining continuity. Of course, the cooperation of the local business community and population is essential. It is vital that investors do not face long delays – such as waiting ten years to establish an industry due to land acquisition disputes or social unrest. The government must strike a balance and take into account all sections of society, ensuring that policies are fair and inclusive.
Above all, EoDB should be the central focus. If we prioritize EoDB and simplify various processes and compliance requirements, it will create a more conducive environment for everyone. The government is fully supportive of these changes, and we are seeing a more hands-on approach across the board. As our Prime Minister Narendra Modi jihas emphasized, the goal should be ‘Minimum Government, Maximum Governance.’ This means reducing unnecessary regulations, as excessive regulation stifles innovation, business growth, and overall progress. Our government is committed to addressing specific issues promptly, and India is undergoing significant transformation. Immediate action is essential to realize these objectives.
Logistics and Production-Linked Incentives (PLI)
Nitin Kuncolienker: The announcement of the new port at Vadhavan in Palghar District, Maharashtra, which will serve as India’s first international trans-shipment port, is a highly commendable initiative. This marks a significant shift towards export trade over imports and is expected to have a positive impact on Goa as well. However, there is a pressing need to re-evaluate ports like Goa, transitioning from being primarily mining-based to becoming commodity-based ports, which could transform the southern part of India. Additionally, we require more of smaller ports that can be connected to major international trans-shipment hubs. I would appreciate it if you could forward these suggestions to the relevant department.
Another noteworthy development has been the Production-Linked Incentive (PLI) scheme, which initially targeted sectors like electronics but has since expanded to other industries. However, a concern that has emerged is that many of these PLIs are being largely accessed by multinational corporations, leveraging their established ecosystems from other countries. What steps can be taken to better promote and support top Indian companies, which may require additional assistance, and how can we foster the growth of more India-centric ecosystems? If Goa can actively participate in this initiative, it would be a tremendous opportunity for our local industries. What would be the most effective approach to achieving this?
Jitin Prasada: Both your suggestions regarding the port and supporting Indian companies are highly commendable. India has immense export potential, and Goa is fortunate to have a port, especially considering that many inland regions miss out on such logistical advantages. This is an area that the government is actively addressing, as improving logistics is crucial for the country’s growth. We are committed to ensuring that India becomes a global hub for exports, manufacturing, and production.
In addition to sea ports, the Budget has also highlighted the importance of air cargo vessels, particularly for perishable goods where timing is critical. Regarding the Production-Linked Incentive (PLI) scheme, its primary objective is to foster manufacturing in India at scale. We aim to attract the best and largest global players to set up operations here. Once they do, we shift focus to supporting MSMEs, which are a key priority for this government, as they play an integral role in the manufacturing and production value chains. This is the core intent behind the PLI scheme.
India is actively reducing its dependence on any single country and strengthening its domestic manufacturing capabilities. We are committed to ensuring that the benefits of the PLI scheme are accessible to all Indian enterprises, and not concentrated in the hands of a few.
This initiative is designed to empower the Indian people and bolster the manufacturing sector. Moreover, we are working on expanding PLI schemes, particularly in the electronics sector, to support Indian companies and ensure that the incentives provided by the government are leveraged by domestic businesses, not just by a select few.
