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NATIONAL MANUFACTURING POLICY
Highlights
1 . The Government of India has announced a national manufacturing policy with the objective of enhancing the share of manufacturing in GDP to 25 % within a decade and creating 100 million jobs . It also seeks to empower rural youth by imparting necessary skill sets to make them employable . Sustainable development is integral to the spirit of the policy and technological value addition in manufacturing has received special focus . effect on the creation of jobs , even in allied sectors , the government has brought out this policy .
5 . The policy is based on the principle of industrial growth in partnership with the States . The Central Government will create the enabling policy frame work , provide incentives for infrastructure development on a Public Private Partnership ( PPP ) basis through appropriate financing instruments , and State Governments will be encouraged to adopt the instrumentalities provided in the policy .
2 . The share of manufacturing in India ’ s GDP has stagnated at 6 . The proposals in the policy are generally sector neutral , 15-16 % since 1980 while the share in comparable location neutral and technology neutral except economies in Asia is much higher at 25 to 34 %. incentivization of green technology . While the National Investment and Manufacturing Zones ( NIMZs ) are an
3 . Inadequate physical infrastructure , complex regulatory important instrumentality , the proposals contained in the environment and inadequate availability of skilled Policy apply to manufacturing industry throughout the manpower have constrained the growth of manufacturing country including wherever industry is able to organize in India . itself into clusters and adopt a model of self-regulation as 4 . Recognizing that the manufacturing sector has a multiplier enunciated .
PREFACE
he concern about the stagnant and low share of the manufacturing sector in India ’ s GDP necessitated a

Tdedicated policy for the sector with a view to accelerated
Commission has identified these as : digitization of land and resource maps and creation of land banks by states ; water zoning ; offset policy ; fiscal and exchange rate measures ;
development , inclusive growth and provision of gainful
strategic acquisitions ; development of world class
employment . The DIPP ’ s vision to increase the share of
manufacturing management capabilities ; trade policy
manufacturing in GDP from 16 % to 25 % was endorsed in the
especially boosting India ’ s exports ; and reforming the role of
conference of State Industry Ministers on 17 November 2009 .
public sector enterprises . A lower emission inclusive growth
The Hon ’ ble Commerce and Industry Minister made an
strategy is another important area . These issues may be
announcement thereafter that the Government will come out
addressed through separate policy initiatives .
with a manufacturing policy . Following this announcement , a
This Policy document has been prepared after extensive
draft was prepared and placed on the department ’ s website on
stakeholder consultations and inputs from the industry , state
31 March 2010 for stakeholder comments . As a response , the
governments and experts in the field of manufacturing ,
NMCC proposed a draft national manufacturing policy .
technology development , and business environment . The
Recently , the Planning Commission has prepared what it calls
policy seeks to present specific action points in the areas
the National Manufacturing Plan . Relevant points from the
identified as constraints that require immediate policy
NMCC and the Planning Commission papers have been
attention . There could be several other constraints which affect
incorporated in this policy document wherever appropriate .
the sector but it is not possible to deal with all of them at the
Concomitant policy interventions which impact the
same time . This policy therefore does not claim to address all
manufacturing sector but which can be taken up for
possible issues affecting the manufacturing sector in India but
development of national policies in the medium term have not
those that are critical to its growth at this juncture .
been directly addressed in this document . The Planning
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