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National manufacturing policy shortly, says Anand Sharma

Special Correspondent

The announcement will follow an inter-Ministerial meeting

Share of manufacturing in GDP must go up to at least 25 % from current 16%: Sharma
Value addition is on the lower side at 2% whereas import of capital goods was 8%

—Photo: M. Vedhan

Union Minister for Commerce and Industry Anand Sharma (second from left) with (from left) Ramu S. Deora, president, FIEO; Walter D. Souza, Regional Chairman, FIEO Southern Region, and A. Vellayan, president, Southern India Chamber of Commerce and Industry, at a meeting in Chennai on Satruday.

CHENNAI: “The first national manufacturing policy will be unveiled shortly,” said Anand Sharma, Union Minister of Commerce and Industry, on Saturday.

Addressing a meeting of industrialists and exporters, he said the Prime Minister would chair an inter-Ministerial meeting on June 9 after which the policy would be announced. As the share of manufacturing in the Gross Domestic Product was stagnating at 16 per cent, it had to change. “We have to take it to a minimum of 25 per cent. That can only be achieved by putting in place a well-thought-out policy,” he said.

Inputs from all sections

The draft national manufacturing policy has inputs from all sections after an intense and absorbing debate in the country and an inter-Ministerial consultation had been completed. The policy would also address issues of skill training and development and value-added manufacturing. At present, value addition was on the very lower side at two per cent whereas import of capital goods was eight per cent. “India can't sustain this,” Mr. Sharma said.

On skill development, he said the country had an ambitious programme with plans for thousands of vocational and skill training centres. With 100 million people expected to join the workforce in the next 10 years, the industrial capacity had to be improved and jobs created. Otherwise, there would be a larger social issue. There was a sense of urgency to move forward very fast, he said.

Time-bound clearances will be given by the zonal offices of the Directorate General of Foreign Trade and there will be quarterly audit of all these zonal offices. The Ministry will take up with the Reserve Bank of India and the Indian Banks Associations the need for banks to introduce the issue of bank realisation certificates electronically for the benefit of exporters.

Ramu S. Deora, president, Federation of Indian Export Organisations (FIEO); A. Vellayan, president, Southern India Chamber of Commerce and Industry; A. Sakthivel, president, Tirupur Exporters Association and Ajay Sahai, director general and CEO, FIEO, spoke.

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