Question: Various initiatives have been introduced previously to enhance the manufacturing sector and achieve industrial self-sufficiency in India. However, the nation still relies on imports for components and accessories. Are adjustments being made to policies to minimize this reliance on essential imports?
ANSWER: The Production Linked Incentive (PLI) initiative has significantly boosted the production of mobile devices and associated accessories. This progress has led to the establishment of a robust ecosystem in India, not only for mobile devices but across other electronic products as well. The PLI program now encompasses medical devices, pharmaceuticals, bulk drugs, specialty steel, automobile components, and drones. The Government is adopting a more inclusive strategy that will focus on skill development and the manufacturing of components. The expanded initiative will also cover sectors like specialty chemicals, textiles, footwear, and toys to satisfy both local demand and global market needs. A special focus of the new plan will be to encourage the manufacturing of crucial components to address gaps in the global supply chain. Through this scheme, incentives will be linked to annual production growth based on established benchmarks. Alongside the Rs.2 trillion allocation for the PLI initiative, further budgetary resources will be designated to promote component manufacturing. It is noteworthy that the PLI scheme has created an additional 1.15 million jobs over the past three years.
Question: The concept of a circular economy is gaining traction among many developing nations. Is India taking specific actions at the Government level to support this initiative?
ANSWER: The circular economy is prioritized by numerous countries as it emphasizes reuse, refurbishment, and recycling over the disposal of products and extraction of new resources. Consequently, the Indian Government is collaborating with the industrial sector to achieve circular economy objectives and implement practices promoting resource efficiency, waste transformation, and sustainable manufacturing. Currently, eleven sectors have been identified that focus on electronic waste, plastic packaging, batteries, tires, and used oil. India also plans to extend the Extended Producer Responsibility (EPR) framework to additional sectors. These guidelines hold producers responsible for their products’ entire life cycle, including waste management and disposal at the end of their useful life, encouraging sustainable design and recycling. As per Indian Government officials, transitioning to a circular economy is anticipated to yield significant economic opportunities within the recycling industry sector, projected to be valued at $3 trillion by 2047.
Question: My family runs a convenience store in Nagpur that operates continuously. However, there have been instances when we were instructed by authorities to close by midnight. Is this action lawful?
ANSWER: According to section 2(2) of the Maharashtra Shops & Establishments Act, 2017, “day” is defined as a 24-hour period starting at midnight. Section 11 grants the State Government the authority to impose reasonable restrictions on the hours of operation for different types of establishments. In December 2017, the State Government established specific opening and closing times for permit rooms, beer bars, dance bars, discotheques, and similar establishments that serve or sell alcohol. Theatres and cinema halls were also mandated to close at designated times. However, from 31st January 2020, cinema houses and theatres were permitted to operate around the clock. Other shops and establishments can function 24 hours without any legal restrictions on their working hours. Recently, the Bombay High Court clarified in a ruling that shops and establishments are allowed to remain open at all times. The Court’s Division Bench stated that continuous operation of shops offers convenience and flexibility to consumers, particularly for those with irregular working schedules. The Court noted that keeping shops open continuously could enhance economic activity due to increased consumer spending and create more employment opportunities. This ruling clarifies that your family’s store can legally operate 24 hours.
HP Ranina is a practicing attorney specializing in corporate and fiscal laws in India.