1. Cash is invested for more than 30 days owing to production time and Factory processing time2. Getting complete quantities as output is fundamentally not possible for any factory. As per latest data, 94-96% yield is seen from factories leading to the additional collection of IGST on 4-6% of inventory. This does not happen in case of completely built units as the quantity being imported is on the Net Units ready for sale.
3. Brands and factories are asked for Bonds (security deposits) over the import of raw material. This is in addition to the IGST and import taxes levied on the imports that again leads to additional investments towards the inefficient business process.
releasing inefficient funds that are otherwise invested for longer timelines2. To motivate investments towards a higher level of localisations, incentives in the form of discounts on
taxes should be offered towards manufacturing of different components. Doing so will solve the
problem on the production line in terms of support and supplies3.Incentives should be offered on training and development of manpower – contributing towards
the manufacturing process, R&D Support process. This will bring efficiency in the output from factories and
improvise on the costing for the Indian factories compared with the global ones
4. Incentives to be offered on for RnD Supports that is required in day to day process for factories to