Examine Business Costs to Enhance Manufacturing and Reduce Statutory Liquidity Ratio, Says Official

Amitabh Kant, the Chief Executive Officer of NITI Aayog, has emphasized the importance of reassessing the cost of doing business in India to enhance the manufacturing sector. He believes that a thorough evaluation of these costs is crucial for fostering growth and competitiveness in the industry. Kant made these remarks during a recent event focused on manufacturing and economic development.

Kant pointed out that one of the key areas that require attention is the statutory liquidity ratio (SLR). He suggested that reducing the SLR could provide banks with more liquidity, thereby enabling them to lend more to businesses. This, in turn, could stimulate investment in manufacturing and support the overall economic growth of the country.

The manufacturing sector has been identified as a vital component of Indias economic strategy, particularly in light of the governments initiatives aimed at boosting production and creating jobs. Kants call for a review of the cost of doing business aligns with the broader goal of making India a more attractive destination for both domestic and foreign investors.

In addition to addressing the SLR, Kant highlighted the need for improving infrastructure, simplifying regulations, and enhancing the ease of doing business. He noted that these factors play a significant role in determining the competitiveness of the manufacturing sector. By creating a more conducive environment for businesses, India can position itself as a global manufacturing hub.

Kants comments come at a time when the Indian economy is recovering from the impacts of the COVID-19 pandemic. The government has been actively working to revive various sectors, and manufacturing is seen as a key driver of this recovery. By focusing on reducing operational costs and improving access to finance, the government aims to encourage more companies to invest in manufacturing capabilities.

Overall, Amitabh Kants insights underscore the need for a comprehensive approach to enhance the manufacturing landscape in India. By addressing the cost of doing business and implementing supportive policies, the country can unlock its potential for growth and innovation in the manufacturing sector.