Foundation For Economic Development

📢 𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗨𝗽𝗱𝗮𝘁𝗲 𝗳𝗼𝗿 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰𝘀 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗲𝗿𝘀 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮! Central Board of Indirect Taxes & Customs on 21st November issued a significant circular clarifying that the concessional duty under IGCR Rules, 2022 is applicable to all manufacturers across the cellular mobile phone value chain. This is a pivotal step towards enhancing domestic value addition in India’s electronics manufacturing sector. Electronics manufacturing is a highly integrated process that involves the movement of components across factories. For instance, in mobile phone manufacturing, subcomponents like display assemblies, phone casings, and camera modules are produced by specialised firms. These firms coordinate their supply chains to ensure that subcomponents are delivered to assembly units, which specialise in integrating them into the final product.  Without IGCR benefits being applicable throughout the value chain, assembly units would face higher costs when sourcing components domestically, making imports more attractive. This clarification improves competitiveness for Indian manufacturers, furthering India’s journey as a global electronics hub. Link to the circular: https://lnkd.in/gy4tJkSU While the circular specifies cell phone manufacturing, similar principles can be applied to interpret Notification No. 57/2017-Cus dated 30.06.2017 for all manufacturing. To receive more such insights on economic growth and Indian manufacturing, subscribe to our newsletter through the link in comments. Ronak Pol Ishita Jain

💡 𝗢𝘂𝗿 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 𝗶𝗺𝗽𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗮𝘀 𝗮 𝗻𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝘁𝗼 𝗰𝗿𝗲𝗮𝘁𝗲 𝗴𝗼𝗼𝗱 𝗷𝗼𝗯𝘀 𝘁𝗵𝗮𝘁 𝘄𝗼𝘂𝗹𝗱 𝗵𝗲𝗹𝗽 𝗼𝘂𝗿 𝘄𝗼𝗿𝗸𝗳𝗼𝗿𝗰𝗲 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝘂𝘁 𝗼𝗳 𝗹𝗼𝘄-𝗽𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝗮𝗻𝗱 𝗹𝗼𝘄-𝗽𝗮𝗶𝗱 𝗮𝗴𝗿𝗶𝗰𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝘄𝗼𝗿𝗸. Manufacturing jobs are 3-6 times as productive, also better-paying than farm work. It's also the only sector that can absorb our relatively unskilled labour at the rate required to ensure sustained GDP growth. Then what explains lower manufacturing employment in India? Our report - 𝗪𝗼𝗿𝗸𝗲𝗿 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 | 𝗨𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝗟𝗮𝗯𝗼𝘂𝗿-𝗶𝗻𝘁𝗲𝗻𝘀𝗶𝘃𝗲 𝗠𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮 - recognises worker accommodation in industrial clusters as a critical unlock for fulfilling India's manufacturing ambitions. For key information and data points on worker housing from our report, visit this link: https://lnkd.in/gUrEfEAG To receive more such insights on economic growth, subscribe to our newsletter through the link in comments. Piyush Doshi Rahul Ahluwalia Mihir Parekh Vinay Ramesh Ronak Pol Nitya Srinath The Convergence Foundation #WorkerHousing #IndiaIndustry #IndiaManufacturing #Manufacturing #GDP #EconomicGrowth #Economy

💡 𝙄𝙣𝙙𝙪𝙨𝙩𝙧𝙞𝙖𝙡 𝙘𝙡𝙪𝙨𝙩𝙚𝙧𝙨, 𝙠𝙣𝙤𝙬𝙣 𝙛𝙤𝙧 𝙩𝙝𝙚𝙞𝙧 𝙨𝙘𝙖𝙡𝙚 𝙖𝙣𝙙 𝙙𝙚𝙣𝙨𝙞𝙩𝙮 𝙖𝙙𝙫𝙖𝙣𝙩𝙖𝙜𝙚𝙨, 𝙖𝙧𝙚 𝙤𝙛𝙩𝙚𝙣 𝙩𝙝𝙚 𝙢𝙤𝙨𝙩 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙞𝙫𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙝𝙪𝙗𝙨.  In India’s apparel sector, Tiruppur in Tamil Nadu stands as the leading cluster, with exports valued at around USD 4 billion. However, Dhaka, a global competitor, exports 7 times more at USD 28 billion. The electronics sector presents an even starker contrast: Sriperumbudur, recently in the spotlight for assembling iPhones, exports about USD 9 billion, while Shenzhen, China’s largest electronics hub, exports nearly USD 350 billion. 𝙏𝙝𝙚 𝙦𝙪𝙚𝙨𝙩𝙞𝙤𝙣 𝙞𝙨, 𝙝𝙤𝙬 𝙘𝙖𝙣 𝙄𝙣𝙙𝙞𝙖 𝙩𝙧𝙖𝙣𝙨𝙞𝙩𝙞𝙤𝙣 𝙛𝙧𝙤𝙢 𝙛𝙤𝙨𝙩𝙚𝙧𝙞𝙣𝙜 𝙡𝙤𝙘𝙖𝙡 𝙘𝙝𝙖𝙢𝙥𝙞𝙤𝙣𝙨 𝙩𝙤 𝙥𝙧𝙤𝙙𝙪𝙘𝙞𝙣𝙜 𝙜𝙡𝙤𝙗𝙖𝙡 𝙡𝙚𝙖𝙙𝙚𝙧𝙨?  While previous policies focused on infrastructure and logistics, a greater emphasis is needed to make bureaucratic processes more responsive to industry requirements. Empowering local cluster administrations to make swift decisions on approvals and clearances is essential. 𝙏𝙤 𝙧𝙚𝙖𝙙 𝙢𝙤𝙧𝙚 𝙖𝙗𝙤𝙪𝙩 𝙢𝙖𝙠𝙞𝙣𝙜 𝙄𝙣𝙙𝙞𝙖𝙣 𝙞𝙣𝙙𝙪𝙨𝙩𝙧𝙞𝙖𝙡 𝙘𝙡𝙪𝙨𝙩𝙚𝙧𝙨 𝙜𝙡𝙤𝙗𝙖𝙡𝙡𝙮 𝙘𝙤𝙢𝙥𝙚𝙩𝙞𝙩𝙞𝙫𝙚, 𝙖𝙨 𝙬𝙚𝙡𝙡 𝙖𝙨 𝙖𝙣 𝙞𝙣𝙨𝙞𝙜𝙝𝙩𝙛𝙪𝙡 𝙥𝙤𝙙𝙘𝙖𝙨𝙩 𝙬𝙞𝙩𝙝 𝘼𝙢𝙚𝙧𝙞𝙘𝙖𝙣 𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙨𝙩 𝙇𝙖𝙣𝙩 𝙋𝙧𝙞𝙩𝙘𝙝𝙚𝙩𝙩 𝙤𝙣 𝙜𝙧𝙤𝙬𝙩𝙝, 𝙙𝙚𝙫𝙚𝙡𝙤𝙥𝙢𝙚𝙣𝙩 𝙖𝙣𝙙 𝙞𝙣𝙘𝙤𝙢𝙚 𝙞𝙣𝙚𝙦𝙪𝙖𝙡𝙞𝙩𝙮, 𝙧𝙚𝙖𝙙 𝙤𝙪𝙧 𝙊𝙘𝙩𝙤𝙗𝙚𝙧 𝙣𝙚𝙬𝙨𝙡𝙚𝙩𝙩𝙚𝙧: bit.ly/48ouiV2 #IndustrialClusters #SEZs #SpecialEconomicZones #IndiaIndustry #IndianIndustry

💡 "India 🇮🇳 is different from most other countries. It has enormously complex exports relative to its GDP," says American development economist Lant Pritchett. But is that enough? Watch the full episode: https://lnkd.in/g4UvhUGe #Exports #India #Manufacturing #EconomicGrowth #Economy #IndiaGDP

💡 There has been a lot of hype about India's 🇮🇳 demographic dividend, ever since liberalisation unlocked possibilities beyond the reach of our once socialist, more austere imagination. Today, the dividend has become this vague, almost mythical assurance of perpetual economic growth. But is it so? In this piece for The Hindu, FED team members Yuvraj Khetan & Harshit Rakheja argue that India's fertility rate has been declining at a faster pace than what was anticipated a decade ago, while there's a still a lot of work to be done in moving workers from low-productivity agriculture to manufacturing. This poses an existential concern: Can India get rich before growing old? Read the full piece here: https://lnkd.in/g6b3T2v2 To receive more such insights on economic growth in your inbox every month, subscribe to our newsletter through the link in comments. #DemographicDividend #IndiaEconomy #IndiaGDP #IndiaGrowth #Demography #IndiaChina

💡 While the trade war between the bigger powers intensifies with Trump’s election, India must make the most of this unique geopolitical churn by positioning itself favourably amongst global manufacturers looking to move out of China. Subsidies such as the PLI scheme are important, but only for getting things off the ground. We must look at a broader structural transformation that prioritises lowering of tariffs and removal of non-tariff barriers such as quality control orders (QCOs), besides single-window clearances and easing of labour regulations. So far, we’ve fallen short on these parameters, while Bangladesh and Vietnam have gained substantially. Trump’s election and the slowing of apparel exports from #Bangladesh is another opportunity for reform that shouldn’t be missed. Link to our newsletter with more ideas on driving economic growth: https://lnkd.in/grWp3SwU #EconomicGrowth #IndiaEconomy #IndiaGDP #TrumpIndia #TrumpChina #TrumpTariffs #USElections2024

"🇮🇳 India is a multi-faceted assault on your senses," says American development economist Lant Pritchett, who lived in India from 2004-2007 during his time with the World Bank. He's still in love with the vibrancy here, also sharing a happy anecdote about what he'd witness going to church in India. Lant has worked all his life enabling economic growth around the world, but if not an economist, who would he be? All that and a bit more in our FED Fiver 5️⃣. Watch our full podcast with Lant here: https://lnkd.in/gJG69_sZ #LantPritchett #EconomicGrowth #Podcast #FEDFiver #IndiaEconomy

In this piece for The Sunday Guardian, I challenge the prevailing call for stringent regulations in the gig economy. Drawing from my conversations with gig workers, I explore the sector's on-the-ground realities and argue against excessive regulations. I invite you to read the full article and share your thoughts! Zomato India | Swiggy | Uber | Ola | Rapido | BluSmart | Amazon | Flipkart | Dunzo #GigEconomy #FutureOfWork #LaborRegulations

In this piece for The Sunday Guardian, I challenge the prevailing call for stringent regulations in the gig economy. Drawing from my conversations with gig workers, I explore the sector's on-the-ground realities and argue against excessive regulations. I invite you to read the full article and share your thoughts! Zomato India | Swiggy | Uber | Ola | Rapido | BluSmart | Amazon | Flipkart | Dunzo #GigEconomy #FutureOfWork #LaborRegulations

💡 “Sir, the app is showing me 5 minutes – why will it take you 15?” This is how my morning commute often starts. And, almost always, the answer is, “I am completing another ride and will be there ASAP.” So, while my trip has been accepted on Uber, the driver is likely finishing a ride on a competing platform. This got me thinking about the gig economy which has been at the center of intense debate, with critics often labeling it as exploitative and in need of tough regulation." In this piece for The Sunday Guardian, FED Team Lead Ronak Pol argues otherwise - Why over-regulating the gig economy will do more harm than good! Read the full piece here: https://lnkd.in/g_VJzZNu #GigEconomy #Uber #UberIndia #GigWork #GigWorkers #Swiggy #Zomato #BluSmart