Combating the issues surrounding land acquisition in India has been one of the top concerns impacting MSME health in the country. Besides the high costs of securing land, a lack of specialised zones to aid the growth of the MSME sector is a major concern.

Speaking at an ETRise Dialogues panel discussion recently held in Mumbai on ‘overcoming challenges regarding land, labour and capital’, Ashish Vaid, President, IMC Chamber put things in perspective. “India has 17% of the world’s population, and just 3% of the land resources, so it’s really important that we utilise our land resources well,” he said.

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This event, hosted under the aegis of ETRise Top MSMEs Ranking, which will be a definitive ranking of businesses basis a rigorous evaluation of their performance across innovation, financial health, and financial growth, saw experts brainstorm on the hurdles faced by the MSME sector.

Expressing concern over the archaic system of title investigation and the approval needed from different ministries over acquiring land for industrial purposes, Vaid said, “We need to get through a system where we can set up parts of different industries whereby they get economies of scale and the land acquisition by selling via nodal agency or leasing from the nodal agency to MSMEs can be done in a proper and organized manner,” he added.

Referring to the immense significance of single window clearance, Vaid highlighted how several permissions from different departments are needed even now. “These are required before the development of an industry on the land acquired after compliance with several laws. Atleast 40-50 permissions are required, and for each one, you have to go to a different department. So it’s not a single window at the moment. We have a website where we can upload the plans, but you have to go to the various departments such as the fire department, forest department, the grievance department etc.,” he elucidated.

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Reiterating his point, he said that many of the things should be made self regulatory with the self certification automatic rule. “Accordingly, projects should be approved or disapproved,” he said.

Referring to the trend of MSMEs importing from China, Vaid said that although China is in a leadership position in this sector, India can advantage from its lower employment costs as well as the anti dumping duties, thereby matching pace by lowering prices and GST rates. “We should encourage global players to come and set up industries here, give them all sorts of incentives as when they export from here, it’s advantage India,” he said.

ETRISE Dialogues has Union Bank of India as the Presenting Partner, MIDC and Caspian Debt as the Associate Sponsors and CARE Ratings as the Assessment Partner. IMC Chamber of Commerce and Industry was an Associate Partner for the Mumbai session.

The next session will be in Bangalore on January 28, 2020. To register,
click here.





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