1.1 In the last two decades , Indian economy has witnessed a |
made sustainable , particularly ensuring environmental |
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transformational change and has emerged as one of the |
sustainability through green technologies , energy |
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fastest growing economies of the world . Industrial |
efficiency , and optimal utilization of natural resources and |
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development in Independent India was catalysed by three |
restoration of damaged / degraded eco-systems . |
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major industrial policy resolutions of Government of India |
1.8 Developments of Indian manufacturing sector calls for |
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in 1948 , 1956 and 1991 , which provided a strong industrial |
deepening and re-calibrating of economic reforms that |
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base . Economic reforms unveiled in 1991 , have brought |
would strengthen the sector and make it grow faster and |
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about a structural shift enabling the private sector to |
become an engine of inclusive growth . |
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assume a much larger role in all sectors of economy .
However , the growth of GDP in India has largely been enabled by a dynamic growth in the services sector .
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1.9 Government of India decided to bring out the National
Manufacturing Policy to bring about a quantitative and qualitative change with the following six objectives :
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1.2 Though in the recent past , the growth of the manufacturing sector has generally outpaced the overall growth rate of the economy , at just over 16 percent of GDP , the contribution of the manufacturing sector in India is much below its potential . |
i . |
Increase manufacturing sector growth to 12-14 % over the medium term to make it the engine of growth for the economy . The 2 to 4 % differential over the medium term growth rate of the overall economy will enable manufacturing to contribute at least 25 % of the |
1.3 This situation is a cause of concern especially when seen in |
National GDP by 2022 . |
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the context of transformation registered in this sector by other Asian countries in similar stages of development . The increasing gap in the sectoral share and the productivity of the manufacturing sector , between India and these economies , indicates that we have not been able to fully |
ii . Increase the rate of job creation in manufacturing to create 100 million additional jobs by 2022 . iii . Creation of appropriate skill sets among the rural migrant and urban poor to make growth inclusive . |
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leverage the opportunities provided by the dynamics of |
iv . Increase domestic value addition and technological |
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globalization . |
‘ depth ’ in manufacturing . |
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1.4 This also has attendant socio economic manifestations in |
v . Enhance global competitiveness of Indian |
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terms of over dependence of a large section of the |
manufacturing through appropriate policy support . |
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population on agriculture for its livelihood , disguised |
vi . Ensure sustainability of growth , particularly with regard |
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unemployment and urban unemployment . India has a |
to the environment including energy efficiency , optimal |
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favourable demographic profile with over 60 % of |
utilization of natural resources and restoration of |
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population in the working age group of 15-59 years . For a |
damaged / degraded eco-systems . |
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country with the largest young population in the world , this |
1.10 In order to achieve these goals : - |
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creates a challenge of significant magnitude . Over the next decade , India has to create gainful employment opportunities for a large section of its population , with varying degrees of skills and qualifications . This will entail creation of 220 million jobs by 2025 in order to reap the demographic dividend . The manufacturing sector would have to be the bulwark of this employment creation initiative . Every job created in manufacturing has a multiplier effect of creating two to three additional jobs in |
i .
Foreign investments and technologies will be welcomed while leveraging the country ' s expanding market for manufactured goods to induce the building of more manufacturing capabilities and technologies within the country ; ii . Competitiveness of enterprises in the country will be the guiding principle in the design and implementation of policies and programmes ;
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related activities . Therefore , a thrust on manufacturing is |
iii . Compliance burden on industry arising out of |
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integral to the inclusive growth agenda of the government . |
procedural and regulatory formalities will be reduced |
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1.5 Besides the employment imperative , the development of |
through rationalization of business regulations . |
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the manufacturing sector is critical from the point of view |
iv . Innovation will be encouraged for augmenting |
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of ensuring that the growth model of India is sustainable by |
productivity , quality , and growth of enterprises ; and |
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providing value addition to our natural and agricultural |
v . Effective consultative mechanism with all stake holders |
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resources , addressing our strategic needs , and developing |
will be instituted to ensure mid-course corrections . |
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new technologies for the welfare of our citizens . |
1.11 The following industry vertical will be given special attention : |
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1.6 The relatively low level of ‘ value-addition ’ in the products |
i . |
Employment intensive industries : Adequate support will be |
manufactured in the country , and the growing imports of |
given to promote and strengthen employment intensive |
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capital equipment – the building blocks of a country ’ s |
industries to ensure job creation . Special attention will |
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manufacturing competitiveness also needs to be addressed |
be given in respect of textiles and garments ; leather |
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urgently . Acquiring depth in manufacturing is crucial from |
and footwear ; gems and jewellery ; and food processing |
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the stand point of long-term competitiveness in strategic |
industries . |
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areas of economy such as defence and telecommunication . It is important to have a strong indigenous value chain addition element from the stand point of national security |
ii . Capital Goods : A robust economic growth would necessitate a strong demand for capital goods . Such growth would create a strong and continuing demand for capital goods . The capital goods industry , which is |
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1.7 Finally , the growth of the manufacturing sector has to be |
the mother industry for manufacturing has not grown at |
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