October 05, 2009, New Delhi: On October 5, 2009, Shri Anand Sharma, Union Minister of Commerce and Industry, inaugurated a National Seminar on Industrial Productivity for Inclusive Growth. On the occasion, he said that the Government of India (GoI) is committed to building infrastructure that will support robust industrial growth and reduce costs. He added that the investment in infrastructure has risen from 4.9% of GDP in 2002-03 to 6% of GDP in 2008. The seminar was attended by Shri NC Vasudevan, Director General of National Productivity Council and Dr Isher Judge Ahluwalia, Chairperson of Indian Council for Research on International and Economic Relations (ICRIER).

The Minister stated that GoI has followed an inclusive model of economic growth to ensure that the benefits of growth percolate down to the poorest of the poor.  The collective challenge we face today is to ensure that the benefits of growth trickle down to all sections of society and to all parts of the country. We cannot allow a situation where we see islands of affluence amidst oceans of poverty. Growth in order to be sustainable must have a human face. Indian industry has a crucial role to play in this regard and modern times demand the creation of a robust partnership between government and industry.

Mr Sharma emphasised that GoI is committed to ensure balanced regional development of the entire country so that while India grows all parts of the country should grow equally. It shall remain the endeavour of the government to ensure that the industrially backward areas of our country receive priority in terms of attracting investments and in generating gainful employment opportunities for the people. According to projections, India has a competitive advantage in skill-intensive industries and if we capitalise on this trend, manufacturing exports could jump to US$300 million by 2015.

While reiterating the challenges ahead, the Minister informed that the first challenge was to create a reservoir of skilled manpower which is globally competitive. The key is to achieve inclusive growth in its true spirit through building a strong skill development initiative that would transform the lives of people so that everyone can be an equal partner in our growth story. The second is improving labour productivity. It is important that the SME sector should infuse modern technology to improve productivity. The government has recently announced a policy dispensation, which has removed the cap on foreign investment for small-scale sectors. The third challenge is to drive manufacturing on a high growth trajectory. While the country has secured impressive gains in the services sector, India is yet to emerge as a major manufacturing hub of the world.

In his address, Mr Sharma stressed that while India unleashes the true growth potential, it is important to ensure that the growth responds to the aspirations of the masses and the people should feel they are partners in the progress and not victims of development. Rural India must grow along with urban India. The Minister said that Mahatma Gandhi Rural Employment Guarantee Act today covers all the districts of the country assuring 100 days of employment to all able bodied people of India.

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