National Manufacturing Policy will create 100 mn jobs: CII

October 16th, 2011 - 1:10 pm ICT by IANS  

New Delhi, Oct 16 (IANS) The National Manufacturing Policy, recently cleared by a group of ministers (GoM), will increase manufacturing sector’s contribution to the gross domestic product (GDP) and create 100 million jobs, a leading industry lobby said Sunday.

“The GoM’s clearance of the policy has raised industry’s hopes for an early announcement of the National Manufacturing Policy, which aims to enhance manufacturing contribution to 25 percent by 2025,” said Confederation of Indian Industry (CII) Director General Chandrajit Banerjee.

“It also aims to create 100 million jobs and put manufacturing sector into a high growth trajectory, making India a favoured destination for manufacturing,” he added.

Currently the manufacturing sector contributes 15 percent to India’s GDP as compared to 34 percent in China, 40 percent in Thailand and and 26 to 30 percent in South Korea, Poland, Turkey and Malaysia.

Even the total workforce absorbed by the industry at 12 percent is lower than that of other countries with China and Germany at 28 and 22 percent respectively.

According to CII, manufacturing contribution to employment generation can increase up to 25-30 percent in India if the share of manufacturing to the national GDP reaches 25 percent.

The growth in this industry has so far been hampered due to high transaction costs, inadequate infrastructure, rigid labour costs, stringent exit mechanisms and lack of skilled manpower, further compounded by high inflation, rising interest rates and current global and domestic uncertainties.

“The policy would usher in far reaching and fundamental reforms that would arrest the declining industrial output. It envisages creating National Investment and Manufacturing Zones which would radically change the way of doing business in India,” said the industry lobby.

“Simplified business procedures and approval systems, expeditious exit policy, third party certifications, technology development etc are directional in CII’s views and would shape a robust manufacturing sector in India,” it added.

Union minister Sharad Pawar led GoM Friday resolved issues over the much awaited National Manufacturing Policy.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |