FICCI suggests five-point action plan for industry in wake of India-China stand-off

New Delhi [India], June 26 : In the wake of India-China stand-off, Federation of Indian Chambers of Commerce and Industry (FICCI) President, Sangita Reddy has suggested a five-point 'PEACE' action plan for the industry.
A letter from President FICCI to Members on India-China stand-off and Industry Action Plan stated, "We have been standing shoulder to shoulder with the government in dealing with the situation and have been sharing with you our inputs and responses to the government."

"FICCI and its members have been supporting all the steps taken by the government in handling the standoff at Dokalam, and will continue to support. While measures have been taken at the government level, it is equally important that industry also takes some actions to strengthen the government's hand in putting 'India first'," she added.

Many of you must have already started taking actions and I would suggest the following five-point 'PEACE' action plan--Productivity: Raising productivity by setting benchmarks is one of the most important elements here. Benchmark yourself against the best in class, set goals and aspire to achieve those goals. If you need any assistance from FICCI in this regard, we have a consultancy wing that will help you, Reddy stated.

"Efficiency: While we improve productivity individually, we have to improve the efficiency in the whole ecosystem. Work with local and state governments to improve efficiency through reforms to improve ease of doing business. Many of FICCI's suggestions have been accepted. We have had multiple interactions with the PM, FM, Commerce and Industry Minister, other Ministers, CMs and many others. Not only have they listened to us but also addressed many issues. FICCI will be happy to take your views and suggestions to the governments,"
The Government led by the Prime Minister has launched the Atmanirbhar Bharat Abhiyan.
"We anticipate that a significant reduction in non-value-adding steps related to government interphase will be removed or simplified. We are suggesting a single-window compliance portal for existing companies much on the lines of single window for setting up new companies," Reddy stated.

Third, Alternates: Many in the industry are dependent on suppliers form a single country. For many products while we have large domestic production, yet we import. Each one of you should look at alternate sources of supply from other countries, the letter further read.
"The PM had earlier laid the vision that each one of us could identify a product that is being imported and manufacture it in India. This is very important to improve resilience of our industry and country. We should work collectively to encourage suppliers and buyers to develop alternate globally competitive supply chains in India. FICCI on its part has developed strategy for Air Conditioners, Furniture, Textiles, Electronic components and Mobile Phones. These are work in progress in the Government and announcements have been made. We are looking at more. I would invite you to let me know if there are areas we need to focus on," Reddy wrote.

"Competitiveness: Innovation and value-addition will enhance competitiveness and allow entry into the global supply chain -- this is a must now. Firms compete and not countries. Therefore, we as industry, must focus on improving competitiveness. The current COVID situation has seen many sectors and firms innovate and competitively produce different products and services, we need to look at each of our businesses and prepare an action plan for competitiveness," she added.

She further write, we realise that many aspects of the government policy affect our competitiveness -- cost of power, land, labour etc. We have clearly communicated that subsidies and wage support (which is crucial to support farmers and lower strata) must come from the government directly and not from business.

"Exports: Focus on exports. If you are not exporting, pleases look at exporting 5 per cent of your production to begin with, and those who are already exporting, must aspire to double it. Explore new markets, new products and services. We need to collectively work to increase exports to levels that helps India take its share in the global trade to 8-10 per cent," Reddy stated.

"FICCI has taken up these points and specific recommendations with the government for the industry as a whole and in specific sectors and we will enable you to work on this PEACE formula in all possible manner. At this time, industry has to remain united and work in tandem with the government. I seek your commitment and support," she added.