10.7.13

PM Panel Unveils Plan to Boost Manufacturing


India will look to manufacture a small civilian passenger aircraft as part of measures approved by a high level body, headed by Prime Minister Manmohan Singh, to boost domestic manufacturing.
The plan includes ramping up steel production capacity to 300 million tonnes, 30% increase in textile exports, and boosting domestic manufacturing capabilities in advanced materials, alloys and composites.
“If we have to grow at 8-9% in the future, this has to come through sustained growth in manufacturing, particularly labour-intensive manufacturing,” the prime minister said at the meeting of the high-level committee on manufacturing. “Manufacturing and manufacturing alone can absorb all those who need better livelihood opportunities.”
Nine central ministries took part in the deliberations.
The additional 300 million tonnes of steel capacity will be installed by Central public sector enterprises in collaboration with the states. India produced about 77 million tonnes of steel last year out of its 89 million tonne capacity. Higher exports, apart from giving a boost to domestic economy and generating employment, will help trim the current account deficit, which touched a record high 4.8% of GDP last fiscal.
India’s manufacturing growth slipped to 1% last financial year and shows no sign of picking up yet.
“India has done well in automobiles, auto-components, pharmaceuticals, metals and cement, but the country has ‘not been able to leverage its strengths both in traditional industries and in emerging sectors to the extent it could have,” the Prime Minister said according to a statement issued by his office.
Singh also flagged concerns about electronics and telecom sectors, where India does not have much manufacturing capabilities. He said whatever limited production the country has, was in lower end items.
on GDP Growth
If we have to grow at 8-9% in the future, this has to come through sustained growth in manufacturing
on Export & Import
Our exports consist of raw materials and primary goods and our imports consist overwhelmingly of manufacturing

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