The followings are the remedies for Industrial Slowdown as applied in India:-
Hundred percent FDI has been permitted in many of the sectors such as B to B commerce, manufacturing activity in Special Economic Zones with some exceptions, many activities of the telecom sector, airports, courier services, for the development of integrated townships, drugs and pharmaceuticals, hotel and tourism sector.
Defense industry sector has been opened up for private sector participation with FDI permitted up to 26 percent.
Foreign equity up to 100 percent will be allowed in Non-Banking Financial Companies (NBFCs).
Excise duties rationalized to a single rate of sixteen percent CENVAT.
Central Excise Rules, 1944 were simplified and rules were reduced drastically.
The high duties of Customs were reduced from 38.5percent to 35percent with the abolition of surcharge.
As remedial measure progress has also been made in eliminating infrastructure bottleneck. The measures include implementation of National Highways Development Project, implementation of National Telecommunication Policy, 1999 through the opening up of Domestic Long Distance (DLD) telephony and also the introduction of the Convergence Commission of India Bill, 2001 in Parliament. Progress in the Telecommunication sector is visible with sharp reductions in tariffs for Domestic Long Distance (DLD) and mobile telephony. Similar reductions in rentals and call charges for fixed lines and International Long Distance (ILD) tariffs and other services could come about through increased competition. They would help reduce input costs for industry.
