Opening up manufacturing alone won’t help economy, says ex-Industries Minister

BENGALURU: Former Karnataka Industries Minister RV Deshpande on Tuesday urged the Centre to permit limited opening up of the entire value chain of an industrial sector when relaxations roll out.

"Merely allowing industries across sectors to function will only add to their inventories, and increase their hardship. The government should permit the entire value chain up to sales, tax," the Congress MLA said.

His letters to the Prime Minister and Home Minister came against the backdrop of Home Ministry’s letter to states.


The Indian Industry was slowing down even before the outbreak of Covid-19, and the virus has further disrupted industries in both supply and demand side. "Many companies already have a high inventory and the production expenses will only add up to their costs.”

“Relaxations are essential to boost economic activity. The proposal by the Ministry of Commerce and Industry as mentioned above is a welcome step but with a rider that adequate care needs to be taken to ensure that inventories won’t pile up. Only then, it will add value to the economic activity,” Deshpande said in his letter.

He urged the Centre to adopt a staggered approach while opening up The entire value chain of Industries from supply, logistics, production and sales. This approach would help the economy better than allowing all sectors with limited activity, he said.