with love to indore

Tuesday, November 15, 2011

P&G in Bhopal

A good news for MP

http://articles.economictimes.indiatimes.com/2011-11-14/news/30397382_1_olay-p-g-home-products-head-shoulders

Actualy now with VAT and GST in picture it is not possible for government to entice industries by giving tax advantage.

Then how to attract them to a state with no ports and little minerals?

1. Land – we are still second largest state state in India by area .government can surely find infertile tracts and convert them to SEZ with liberal labour law

2. Educated workforce – Even today more people of other states like Bihar, UP, Gujarat and MP hold management positions in private and government concerns in MP than MP people holding such positions outside. Selection from MP into UPSC is below its population share and to make matters worse even MP PSC is dominated by people from UP & Bihar

3. At least for consumer goods being consumed in state government should insist that they are manufactured in MP. Soaps, toothpastes, shampoos , biscuits, chips, cold drinks could be beginning points.

4. Pepsis has chips making units for lays in Bihar, Punjab and Maharashtra but none in MP

5. Similarly vehicles and automobiles manufactured inside state could be given tax exemption (as it is not possible to tax stuff coming from outside anymore with arrival of VAT and GST ..a kind of WTO for Indian economy)

6. Try to develop cluster of industries and ask big industries like P&G and others to develop a vendor/supplier base in MP itself. As real employment is generated by these vendors/suppliers to large companies not by the large company themselves who have capital intensive operations

7. Lets hope this one off opportunity which is happening solely because of economic opportutniy and not because of efforts by Government of MP goads them into doing some useful things

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