The National Manufacturing Policy aiming to enhance competitiveness of the Indian manufacturing sector is likely to be rolled out by end of this year  Over the years, various initiatives and policies undertaken by the Government of India (GoI) have helped the country to evolve as one of the fastest growing economies in the world. With the domestic manufacturing sector contributing significantly to the country’s GDP, an urgent need has been felt to boost the sector. Understanding this need GoI decided to come up with a National Manufacturing Policy (NMP) by August this year, which has been delayed due to some odd reasons. However, the industry has a reason to rejoice as NMC, which is aimed towards increasing competitiveness of the Indian manufacturing sector, is likely to be rolled out by 2010-end, said Anand Sharma, Union minister of Commerce and Industry. Mr Sharma added that the draft of the policy is in final stage of consultation with all the stakeholders and hopefully NMC will see the light of the day by year-end.
Industry upbeat about NMC
Ever since the government had announced formulation of NMC, the same received thumbs up from the industry players who believed that the policy will promote industrial activities across the country. According to Vasanta Mamania, managing director of Bhoumik Industries, a mid-sized manufacturer of plastic products in Mumbai, “Although the manufacturing sector is a significant driver of the Indian economy, the contribution of the sector is yet to match that of its global counterparts. Therefore, after its roll out, NMC is expected to attract significant overseas investment into the sector, which will boost the overall growth of the sector.”
Mr Mamania also added that the policy would help to encourage R&D in the sector and create a buoyant manufacturing environment. Notably, the share of the manufacturing sector in national income rose marginally to 16% at present from 15.8% in 1991. Under NMP, integrated industrial developments comprising greenfield industrial townships with infrastructure facilities such as effluent treatment plants and educational facilities, among others would be undertaken.
Aid to NMIZs
Analysts also opine that rolling out of NMC at the earliest would also facilitate setting up of National Manufacturing and Investment Zones (NMIZs), which aim to not only attract investments but also increase the sector’s contribution to the country’s GDP to 25% by 2022.
According to Manjunath S Samprathi, managing director of Sun Castings, a mid-sized manufacturer of automobile components in Bengaluru, “The proposed NMC aims to address and remove the problems present in the SEZ policy. With global manufacturing firms eyeing to venture into Indian territories, it is essential to roll out NMC at the earliest to entice these firms to set up their manufacturing units in the country.”
It is also believed that implementation of NMC before introduction of the much awaited Goods and Service Tax (GST), which will provide manufacturers a single window to access seamless credit across the country’s supply chain, will be a huge benefit. Meanwhile, Mr Sharma said that once NMC comes into effect, apart from generating huge employment opportunities, the same is likely to double the productivity of the manufacturing sector within the next 5 years.
Arup Choudhury |
