In a bid to arrest declining manufacturing output, the Department of Industrial Policy and Promotion has urged the concerned government departments for a faster implementation of the national manufacturing policy (NMP). In a missive shot to various central ministries including the department of revenue, department of economic affairs, ministry of micro, small and medium enterprises and ministry of environment among others, Secretary DIPP, PK Chaudhery has said that a faster implementation of the manufacturing policy would not just create jobs but will also increase the manufacturing production in the country.
The National Manufacturing Policy aims to create 100 million jobs by 2022 and develop mega industrial zones with world-class infrastructure and flexible labour and environment regulations. The NMP aims to increase the share of manufacturing in the economy to 25% from the current around 16%.
“The department is now undertaking the implementation of the national manufacturing policy in a time-bound manner in view of the urgent need to arrest the slowdown in Indian manufacturing,” the DIPP letter said. DIPP has also emphasized the role of ministry of micro, small and medium enterprises in the roll out of manufacturing policy at the ground level as it accounts for 45% of the country’s output and 40% of exports. In his letter Chaudhery said since the policy talks about reducing the burden of regulatory compliances and provides better access to technology and finance along with select incentives, once MSME adopts the same, it will have a multiplier effect on the output.
Understanding the need to push the manufacturing output, commerce and industry minister Anand Sharma has also called an urgent meeting with the industry captains on Dec 19.
In October 2011 the Index of Industrial Production (IIP) declined by 5.1%, slipping significantly below the market estimates. The October IIP numbers were the weakest in 31 months as a result of decline in manufacturing, mining and capital goods output. The decline in the index was led by a sequential decline of 5.8% in the manufacturing segment. Experts are alarmed that the IIP numbers may remain subdued due to the pressure on the manufacturing sector on account of the high interest rates and rising input cost.
FE had earlier reported that DIPP had reached out to the chief secretaries of a number of States for faster implementation of the manufacturing policy so as to spread its benefits at the ground level.