India Cellular and Electronics Association (ICEA) welcomes NITI Aayog’s report on “S.A.F.E. Accommodation – Worker Housing for Manufacturing Growth,” as a pivotal initiative aligned with the current and future needs of India’s manufacturing sector. By advocating Secure, Affordable, Flexible, and Efficient (S.A.F.E.) accommodations for industrial workers, the report addresses critical challenges that impact workforce stability, productivity, and inclusivity, which are essential for driving India’s aspirations as a global manufacturing hub.
“Providing accessible, affordable, and well-planned housing for industrial workers is not just a necessity; it is the need of the hour,” said Mr. Pankaj Mohindroo, Chairman, ICEA. “This comprehensive framework by NITI Aayog lays out actionable solutions to long-standing challenges, such as inadequate housing near industrial zones, which have often resulted in workforce attrition, instability, and lower productivity. Furthermore, the report’s emphasis on gender-inclusive recommendations mark a significant step toward encouraging more women to participate in the manufacturing workforce, an area where the electronics sector stands to benefit immensely.”
ICEA commends the report’s focus on aligning industrial worker housing with India’s long-term vision for Viksit Bharat by 2047, under flagship initiatives such as Make in India and Atmanirbhar Bharat. The electronics manufacturing industry, which thrives on a centralized and stable workforce, sees this initiative as a catalyst for fostering a competitive ecosystem.
Some of the critical regulatory and financial reforms proposed in the report, include:
- Streamlined zoning and land-use policies: Promoting mixed-use developments in industrial areas to reduce commute times and improve worker accessibility.
- Public-Private Partnership (PPP) Model: Encouraging collaboration between the government and private players with Viability Gap Funding (VGF) support, which can address financial bottlenecks and accelerate project development.
- Incentives for sustainable development: Reclassifying worker accommodations under residential categories to enable lower taxes, utility rates, and GST exemptions, thereby making such projects more viable for private developers.
“The electronics manufacturing industry is heavily reliant on a skilled and stable workforce. By addressing issues like restrictive zoning laws, high operating costs, and inadequate housing capacity, this report provides a roadmap to eliminate barriers that have historically limited industrial growth,” added Mr. Mohindroo. “Equally important, the focus on housing as a tool for social inclusion will create an environment where more women workers feel safe, supported, and empowered to join the sector.”
ICEA believes that industry must take this initiative head-on to build global-scale capacities that can compete in a rapidly evolving market and position India as a manufacturing powerhouse. Implementing the report’s recommendations will enhance workforce retention, attract global investors, and drive growth in the manufacturing sector. Committed to the S.A.F.E. framework, ICEA will work with stakeholders to position India as a leading manufacturing hub.
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