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