US President Donald Trump’s recipeal Tariff has launched a tariff attack between China and America. If you think that India will harm India due to this tariff war, then you are thinking wrong. Let us tell you that India can increase its manufacturing capacity with the current tariff war between the US and China. With this, you can export their goods to the market around the world. Amidst all this, are the factory present in India ready for this revolution? This is the biggest question and we are telling about it here.
Let us tell you that the US President had imposed 34 percent tariff on China, which increased to 84 and then 120 percent. Currently, 145 percent of the recipes are being tested on China, due to which Chinese goods in America have become much more expensive than before. India can benefit from this tariff war on a large scale.
How much is India’s factory ready for manufacturing?
Manufacturing depends on many things. It has big obstacles in factory size, technology and government rules. A firm named Prosperiti has explained the strictness of construction rules in India in the Economic Think Tank and Economic Survey 2023-24. In this report, it has been told in which manner the factory is constructed in a plot, then a large part of that plot gets wasted due to the rules.
1. Problem of ground coverage – In India, when a building is built on a land, according to the rules of construction, construction is done on 40 to 60 percent to build a factory or a building. Whereas in the second and hogkog, a factory can be built on 100 percent land.
2. Setback Rules (distance from building to land from building)- These rules have been made to protect against fire, but there was no focus on technology at all. Due to this rule, it is mandatory to leave up to 60 percent of the land for the factory in many states.
3. Parking Rules- India’s roads are one of the busiest roads in the world, due to which there is no road side parking system in the country and while making the factory, one has to keep the parking space inside the factory and due to this, a lot of land has to be left empty.
4. Floor Area Ratio- The permission to build a multi -story building for the factory in India is very less. The country has a permission of only 1.3 times floor space on an average, while 13 times in Japan, this permission is up to 15 times in Singapore Hour Hoggogogs.
Due to some more such rules, India’s manufacturing capacity is low and the goods that are made are expensive due to the high cost. If relief is given in the rules, then the size of factories will increase and production will increase. Also, the price will also be controlled.