Share of manufacturing in India's GDP to go up to 25 per cent by 2020: Anand Sharma new
The new manufacturing policy aims to raise the share of manufacturing in the country's gross domestic product (GDP) to at least 25 per cent within the current decade, commerce and industry minister Anand Sharma said.
Manufacturing currently contributes to just about 16 per cent of India's gross domestic product (GDP) despite record growth of 11 per cent over the last few years, he said while delivering the keynote address at the first 'Green Manufacturing Summit' on product, process and technology in New Delhi today.
India's manufacturing sector is expected to grow at 9 per cent in the current financial year, he said.
This is despite the country being ranked second in the world in terms of manufacturing competitiveness, he added.
The policy thrust on manufacturing is not just as an economic imperative, but also as a crucial social imperative integral to our inclusive growth agenda, he said.
"Manufacturing sector engages 11 per cent of India's workforce and contributes to a fifth of our GDP and nearly half of our exports. In the next decade, 100 million people are set to join the workforce and the manufacturing sector alone holds the potential of providing gainful employment to these people," he pointed out.
He said the draft manufacturing policy is ready, which will shortly be discussed at a high level committee on manufacturing to be chaired by the prime minister.
The key objective of this policy will be to enhance the sectoral share of manufacturing to at least 25 per cent of GDP within this decade and to double the current employment in this sector. In the next 5 years, India will witness investments of nearly $200 billion in manufacturing, he added.
Asia, he said, would become the fulcrum of global growth, having a distinct advantage of demography and the availability of rich human resource and a large trained scientific manpower, which has the ability to innovate and adapt to new technologies.
During his deliberation, he also emphasised that the ASEAN has also re-oriented itself effectively as an integrated value chain of manufacturing and in certain segments, especially electronic hardware manufacturing and automobile engineering. They are a force to reckon with, he said.
The Indian economy has seen momentous changes, which has been spearheaded largely by a revolution in the service industry. It is a tribute to the intellectual genius of our people that software development has become synonymous with India," he said.
Emphasising the need of green manufacturing, he said, India has made a commitment to follow a low-carbon growth strategy, which will be a key agenda in the 12th Plan.
There is an emerging global market for environmental goods and services, estimated at $190 billion, which will see an annual growth of 15 per cent, he said.
However, the whole issue of environmental technologies needs to be looked at in the context of the monumental challenges of development and poverty alleviation, he added.
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