Govt defines 3 pillars for making India a manufacturing hub

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Saurabh Gupta | 08 Sep, 2014
Identifying the Government's mandate to put India on a world map as a Manufacturing hub, the Department of Industrial Policy and Promotion (DIPP) has defined three pillars for bringing out transformation in manufacturing.

"Improving business environment, enabling manufacturing, opening up Foreign Direct Investment (FDI) in key sectors are the three pillars," Minister of Commerce & Industry Nirmala Sitharaman Monday said while addressing a press conference for the 100-day report card of Narendra Modi-led government.

Minister of Labour, Narendra Singh Tomar said, "Development of a robust manufacturing sector is the priority of the Government. It has the potential to not only take the economic growth to a higher trajectory, but also to provide employment. The Government is committed to remove all bottlenecks and develop India as a manufacturing hub."

"A number of measures have been taken by the Government in that direction," he added.

Narendra Singh Tomar, Minister of Labour and Employment, Mines, Steel; and Nirmala Sitharaman, Minister of State I/C for Commerce & Industry and MoS for Finance and Corporate affairs hold a Press Conference in New Delhi on labour and industry issues. MoS Employment, Mines and Steel, Vishnu Deo Sai and Secretaries of Department of Industrial Policy and Promotion and Department of Labour were also present at the conference.

According to a presentation on '100 days of the New Government: the making of manufacturing driven economy' presented by the department, "During the last 100 days, the economic activity has picked up as reflected in the quarterly growth figures of GDP which grew at 5.7 percent in the first quarter (Q1) of April-June 2014 over the corresponding period of the previous year (based on CSO estimates)."

Industrial growth in general and growth in the manufacturing sector in particular has shown significant improvement with growth rates becoming positive as compared to negative growth rates in these sectors in the corresponding period of 2013-14.

Gross Fixed Capital Formation (GFCF), the indicator of investment grew as much as by 7percent in Q1 of 2014-15, while last year in Q1 the growth rate of GFCF was negative, which reflects upbeat mood of investors and augurs well for the future growth prospects.

This perceptible improvement is a reflection of the improved business environment and market sentiment. The HSBC PMI report of July and August 2014 and the Business Confidence Index recently brought out by NCAER validate the positive business sentiment.

This perceptible improvement in the economic performance in last three months is a reflection of the improved business environment and market sentiment, an outcome of the series of initiatives taken by the Government to bring about positive changes to revitalise the industrial sector in general and manufacturing sector in particular. A number of positive announcements have already been made in the Union Budget 2014-15 in that direction, it said.

FDI being an important resource, the Government has taken a number of steps to attract more FDI inflows into the country. FDI inflows have increased by 75 percent during June and July, 2014 over the corresponding period in previous year, it added.