The Hindu Business Line : `Manufacturing sector must act fast to make a mark'

WITH the comparative advantage for manufacturing shifting in favour of developing countries, Indian industry needs to devise fresh strategies in the near-term to enhance its share in global manufacturing output, according to the Secretary, Department of Economic Affairs, Mr C.M. Vasudev.

"China has already managed to corner a large share of the manufacturing sector output. The domestic industry, therefore, needs to act quickly to cash in on the emerging opportunities," Mr Vasudev said at an interactive session on `Making Indian manufacturing an engine of growth,' organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here on Friday.

Mr Vasudev pointed out that the policy preference was more towards attracting foreign direct investment (FDI) in the infrastructure sector than in the labour-intensive manufacturing sector. This is in contrast to China where the labour-intensive manufacturing sector accounts for a large share of the FDI.

"We have not been very aggressive on labour-intensive manufacturing because of various reasons including conflicts of interest," Mr Vasudev said. He also underlined the need for the Indian industry to use information technology tools in a larger way to enhance productivity.

FICCI members held that the high levels of taxation of the manufacturing sector were coming in the way of the sector becoming an engine of growth for the economy. They held that there was no reason as to why the manufacturing sector should continue to "cross-subsidise" the other sectors of the economy. Manufacturing sector contributes more than 70 per cent of the total tax collections.Mr Ashwin Dani, Managing Director, Asian Paints, said that the "manufacturing sector is highly over-taxed" and remedial measures are required to correct the situation.

Send this article to Friends by E-Mail

Stories in this Section
India major user of anti-dumping measures

Cement sector output crosses 100-mt mark

TN jobs profile reflects economic shift -- Services sector employing larger numbers

AP a favoured destination for investments: Minister

Karnataka: Call for awareness on clean environment

Move to ensure success of 8-digit customs tariff code

Pvt sector allowed into primary healthcare

Land bridge to Lanka to cost $500 million

Four cos seek to retail petro goods

Privatising only transmission will not help: PowerGrid

Power generation, distribution units allowed in SEZs