Domestic supply of electronics is already less than half of domestic dem#8743 and although it is growing at 16 per cent already, demand is growing much faster.
India needs manufacturing sector growth for a variety of reasons.
Ficci has suggested formulation of a 'manufacturing policy'. Such a policy will spell out guidelines for attaining a 12% growth of the sector annually. Guidelines will help in terms of incentives and subsidies; technology development; development of sustainable raw material base; regulatory and procedural reforms to the manufacturing sector. The manufacturing sector's profitability has been badly affected in the last few months & the government needs to intervene immediately.
"The report of the committee will form basis for the country's manufacturing policy," National Manufacturing Competitiveness Council Chairman V Krishnamurthy, who is also member of the panel, told reporters. Prime Minister Manmohan Singh had announced setting up of the high-level committee in 2006. Its mandate included looking into macro-economic issues stifling the growth and competitiveness of the manufacturing sector.
Quoting a study conducted by the Department of IT in consultation with the National Manufacturing Competitiveness Council, it said that 'an estimated 2.25 million persons would be directly employed in the industry (IT) by 2015 as against 0.77 million in 2007'. Minister of state for labour and employment Harish Rawat told the Lok Sabha that incremental human resource requirement has been estimated to be around 1.5 million persons.
Increase in the value of Rupee combined with rising interest rates has resulted in erosion of profitability and competitiveness of Indian exports by up to 12 per cent, according to a report by Ficci.
A high-powered panel set up by Prime Minister Manmohan Singh to go into the problems of manufacturing has come out with far-reaching draft strategy including labour reforms to achieve 12 per cent growth in the sector to sustain 9 per cent GDP growth.
Finance ministry opposed to exemptions in principle: Official.
Apprehending a slowdown in the growth of the economy due to the hardening of interest rates, the appreciating rupee and falling tariffs, the government has decided to set up a group to discuss the impact of these changes.
Debroy worked as a consultant in the Department of Economic Affairs in Finance Ministry.
Index of industrial production data had also shown that the sector grew at 3.1 per cent after contracting in the previous quarters.
'Modi has given India its 'lost half-decade'. Elect him again and by 2024 it will be a lost decade'
India's new policy commission has received a makeover and a dream team has been formed to head the Think Tank, NITI Aayog.
Industry is displeased over the failure of the National Manufacturing Policy, which has failed to invite any sizeable investment since it was launched more than two years ago.
Cabinet may take up amendments to 3 laws on Wednesday; but no relaxed retrenchment norms yet.
For the past few weeks, the government has been in an overdrive, pushing stuck projects with the larger aim to improve the country's economic growth, which had fallen to a four-year low of 4.4 per cent in the first quarter of this financial year.
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