ANIMESH'S VIEW
Animesh's View: Implementing The ISV Program For Bihar's Development
Bihar's leaders and government officials have utilized their skills and experience to attract investments and industries to the state, but they could not succeed and failed to create millions of employment.
Drawing from Animesh's learning and international experience working with some of the fastest-growing nations, firmly believes that implementing the ISV (In-State Value) program in Bihar can address and solve the state's major challenges within two years of implementing ISV and it can be a game-changer for Bihar, helping to tackle it’s major problems and create substantial positive impacts.
Enhancing Bihar's Economic Growth and Diversification through ISV Program
Implementing the In-State Value (ISV) program in Bihar can address the state's major issues. This program is intended to:
This program is important for Bihar to create value in every part of business and to grow the economy over time.
ISV will recognize the prioritization of state value creation. ISV aims to attract more investors for investments, diversify the economy, create more job opportunities, and support skills development in Bihar.
The ISV program in Bihar will make sure that 70% of the money it spends stays in Bihar. This will help create a good business environment that can offer many new jobs. It will also make Bihar more attractive to international businesses.
Who can participate in the ISV Program and get benefits?
- Suppliers, manufacturers, service providers, or contractors working with the Bihar Government are expected to participate in the ISV program.
- The stakeholders offering their products/services to the people of Bihar can also participate in ISV program.
The Bihar Government should give contracts and extra rewards or financial help based on their ISV percentage. If the ISV% is higher then they will get more benefits and better growth opportunities in Bihar.
Trading companies and distributors in Bihar are assigned an ISV score of zero. This is because they usually don't add much value to the state's development.However, if a company goes beyond the typical role of trading or distributing, such as by assembling products for the people of Bihar, installing the product, or providing maintenance, they can request an ISV score. This score can help them get benefits and financial support from the Bihar Government based on their ISV percentage.
More about ISV (In-State Value)
All Information and important details about the ISV program will be in a document called the ISV form. Animesh will create this ISV form, including typical KPIs, and a detailed agenda for ISV program implementation. To make sure we're doing well, There will be a separate group to check if we're meeting the goals set by the Industrial Ministry. This information will be shared only with people who need to know how things are going.
Does ISV apply to both local and international businesses?
In Bihar, ISV will be a part of the assessment for all contracts, businesses, and agreements, whether they are local or international. It treats everyone fairly, whether they are from Bihar, other parts of India, or from outside India.
Why is the ISV program in Bihar so crucial?
Increased Investment: The ISV program plays a crucial role in attracting substantial investments into Bihar's industrial sector, thereby fostering economic growth and development.
Job Creation: By encouraging industrial development, the ISV program contributes significantly to the creation of job opportunities, addressing unemployment challenges, and enhancing livelihoods.
Economic Diversification: ISV diversifies Bihar's economy by promoting a wider range of industries, reducing dependency on traditional sectors, and increasing economic resilience.
Workforce and Skills Development: This program facilitates the development of a skilled workforce through training and education initiatives, equipping individuals with the expertise required for modern industries.
Higher GDP: The ISV program's impact on increased investment, job creation, and economic diversification directly leads to a higher Gross Domestic Product (GDP), reflecting the overall economic strength of the state.
Higher Revenue Generation: Through increased industrial activities and economic growth, the ISV program generates higher revenue for the government, enabling the state to invest in essential services and infrastructure development.
How ISV Will Be Calculated In Bihar?
ISV-Bihar: To figure out the starting point for the ISV process, you need to fill out a survey when joining the ISV program. After becoming a part of the ISV program, suppliers build a 5-year ISV action plan to improve the ISV score. This plan should show how they intend to create value and improve the development in Bihar State.
The formula to calculate ISV% for the Supplier is as follows:
ISV% = (A + B + C + D + E)/T + X
Here's what each letter means:
- A = Goods and services made in Bihar
- B = Compensation/Salary paid to the people of Bihar
- C = Training and development given to residents of Bihar
- D = Supplier development in Bihar
- E = Local research and development in Bihar
- T = Total costs incurred within Bihar
- X = Export/Outside Bihar Revenue Factor expressed as a percentage based upon Export/Outside Bihar revenue divided by total revenue up to a maximum of 10%
Real benefits from ISV in Bihar?
A self-sustainable economy in Bihar brings many good things that last a long time. These include:
- Quality jobs for people who live in Bihar.
- New and different types of businesses and industries.
- Becoming better at competing with others.
- The people who sell things to these businesses will also get benefits. They will have access to workers in Bihar who are very skilled.
- In addition to the direct benefits, suppliers will gain access to a highly skilled workforce in Bihar.
- Suppliers will be recognized as prioritizing value creation in the state.
- It can lead to increased opportunities for expansion into markets all over Bihar and even outside.
How can ISV benefit a company’s business?
- ISV will recognize the prioritization of state value creation.
- Increased ISV scores will have the potential to get more business from government and private companies in Bihar.
- It drives toward developing a skilled and affordable local workforce, making goods and services more competitive locally, regionally, and globally.
- This program has the potential to help companies develop new products, services, and technologies through partnerships within and outside Bihar.
- This will lead to improved business performance and a more diversified economy.
- By default, the Industrial Ministry will assign one user account to each company.
- If the company requires an additional user account, they may send a request to the ISV team with proper justification for evaluation.