'Cut Delays, Industries Need Single-Window Clearance, Licence at Doorstep'

The state government should focus on simplifying the licence issuing process, and ensure that there is ease of doing business in letter and spirit, urged MG Balakrishna, president of Federation of Karnataka Chambers of Commerce and Industry.

- MG Balakrishna

In an interaction with the editorial team of TNIE, he spoke on several issues -- the challenges industries are facing, encouragement for setting up of industries in rural areas, and others. Excerpts.

How are industries doing in Karnataka?

Industries are not doing great. The current government is focusing heavily on revenue, primarily due to the implementation of free guarantee schemes. To generate funds for these schemes, they are increasing license fees for industries. In Karnataka, multiple departments have independently raised their fee structures, impacting industries significantly. We are trying to explain to the state government that if they do not address these rising costs -- like licence fees and other expenses -- it will hurt industries trying to compete globally.

What are the challenges industries face regarding wages and MSME policies?

Industries are concerned about the government's proposal to increase minimum wages, with the government suggesting Rs 50,000, while labour unions are demanding Rs 30,000. The matter is currently in court, and industries argue that such a steep wage hike would make their products more expensive. This could harm their ability to succeed in global markets. Industries have also approached the court, stating that the increase in wages would significantly raise manufacturing costs, impacting their viability. In addition, the MSME (Micro, Small, and Medium Enterprises) policy needs urgent revision.

What solutions are industries proposing for infrastructure and ease of doing business?