The Hindu Business Line : NMCC calls for setting targets to achieve 12 pc manufacturing growth

THE National Manufacturing Competitiveness Council (NMCC) has called for setting short-term, medium-term and long-term goals at the national and firm level, to help achieve high growth rate for the manufacturing sector.

It has called for the launch of a National Manufacturing Initiative, with a 10-year horizon, pointing out that the manufacturing sector must grow by at least 12 per cent per annum in the next decade if India is to achieve GDP growth of 8-9 per cent.

The NMCC has said this in its recommendations in the final draft of the National Strategy for Manufacturing, which was discussed at the 4th meeting of the NMCC, held under the Chairmanship of Dr V. Krishnamurthy here on Friday.

The approach adopted by NMCC comprises a national level strategy paper on manufacturing; taking up sub-sectors having immediate potential for gains in terms of growth, market share, employment and identify impediments, on which suitable action can be initiated.

It also calls for examination of issues cutting across most sub-sectors such as HRD, training, innovation, taxation, and also engage various States in this process as they drive manufacturing, investments and employment generation, said an official statement.

If the nation's GDP is to grow at balanced 8-9 per cent per annum, then the manufacturing sector has to grow at 12-14 per cent per annum over the next decade compared to less than seven per cent growth in the last two decades, it said. A growth target of 12 per cent in manufacturing would create about 1.6 to 2.9 million direct jobs annually. The long-term goal should be to aim a 25-35 per cent contribution of manufacturing in the GDP, it said.

Following the meeting, members of the NMCC called on the Prime Minister, Dr Manmohan Singh, and briefed him on the activities of the Council, besides seeking his guidance on various issues relating to India's manufacturing competitiveness, added the release.