Look for alternate sources of supplies, Ficci tells members

Reddy said "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 further said the industry needs to focus on the five-point 'PEACE' action plan -- Productivity, Efficiency, Alternates, Competitiveness and Exports.

Amid the ongoing border tensions with China, industry chamber Ficci on Friday asked its members to look for alternate sources of supplies and not remain dependent on a single nation. "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 Galwan valley, and will continue to support," Ficci President Sangita Reddy said in a letter to members on the India-China standoff and the industry's action plan. Reddy said "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 further said the industry needs to focus on the five-point 'PEACE' action plan -- Productivity, Efficiency, Alternates, Competitiveness and Exports. Elaborating on 'Alternates', the letter said "many in industry are dependent on suppliers from 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." She also stressed on the need to improve efficiency in the whole ecosystem and asked members to work with local and state governments to improve ease of doing business. "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," Reddy said. On the Atmanirbhar Bharat Abhiyan, she said a significant reduction in non-value adding steps related to government interface is anticipated. Ficci has suggested a single-window compliance portal for existing companies, much on the lines of that for setting up new firms

Innovation and value-addition will enhance competitiveness and allow entry into the global supply chain, which is "a must now", Reddy added

"Firms compete and not countries. Therefore, we as industry, must focus on improving competitiveness," she said, adding the COVID-19 situation has seen many sectors and firms innovate and competitively produce different products and services. The Ficci president further said many aspects of government policies affect industry's competitiveness, including in areas like cost of power, land and labour.   "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," she noted. Reddy also called upon the industry to focus on exports by exploring new markets, products and services. "At this time, industry has to remain united and work in tandem with the government," the letter said.

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