Thaindian News

New Delhi, Dec 20 (IANS) The Congress party Monday urged the centre to formulate a national manufacturing policy to attract more foreign direct investment (FDI) to India and boost industrialisation.”Congress urges the government to adopt a national manufacturing policy that will raise the share of manufacturing in the economy and absorb a large number of young people who will join the workforce,” said a draft resolution on economic affairs released at the 83rd Congress plenary here.

“Congress remains firmly committed to rapid industrialisation. It is industry, especially manufacturing, that will impart a competitive edge to the economy and create more jobs,” it said.

Moved by Rural Development Minister C.P. Joshi, the resolution termed FDI crucially important for economic growth and said the party welcomed the investments, especially if they were directed towards the productive sectors of the economy.

“It is important to put in place transparent rules and regulations that will encourage FDI to flow in an orderly manner into sectors that need and can absorb foreign capital,” it said.

FDI flow to India has declined sharply this year on continued concerns over opening of multi-brand retail and insurance sectors to foreign investment.

It declined 37.84 percent to $12.40 billion in April-October this year from $19.95 billion during the corresponding period last year. India received $25.89 billion foreign direct investment in 2009-10 and targets $33 billion FDI in the current fiscal.

“While domestic savings will be the largest source of investment, foreign direct investment also has a crucial role to play,” the Congress resolution said.