For Quick Alerts
For Daily Alerts

'Cheap labour not enough to drive mfg growth, lure investors'

By Religare

Cheaper labour is not enough to drive the manufacturing growth and attract investors into the country as there are other factors like 'high power tariff' and 'tougher regulatory regime' which need attention, NITI Aayog Vice-Chairman Arvind Panagariya said as per the PTI report.

"We are much cheaper then China. Foxconn pays wages three to four dollar an hour... But that is not sufficient. That we can tell you from our own experience. There are also other factors," Panagariya said at a function.


Elaborating about other factors he said, "Power tariffs in India are very high. If the power tariff is relatively high then price (of product) will go up.

About the cheaper labour he thinks that labour margins (costs) per worker is low so that it could not be the only advantage to attract big investors in the country.

Panagariya also explained about other impediments like tougher regulatory regime which is hampering exports. As per his view, exporters have to seek a large number of clearance before exporting a product from India.

He is of the view that more investors would invest here in manufacturing plants for exports only when there would be conducive conditions.

Panagariya also opined that GST (Goods and Service Tax) will help in accelerating growth as redesigning the tax system for improving efficiency is required.

He observed that the manufacturing is heavily taxed but services are not in India.

He hoped that more quality jobs will be created with more investments coming in India like Foxconn which has planned to set up manufacturing facility.

Story first published: Tuesday, August 25, 2015, 9:20 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more