The Hindu Business Line : FICCI seeks manufacturing policy to drive growth

Taking a cue from the Chinese manufacturing industry which receives a host of incentives from the Government, the Federation of Indian Chambers of Commerce and Industry (FICCI) has sought similar incentives from the National Manufacturing Competitiveness Council.

“The Government should formulate a comprehensive manufacturing policy which should provide guidelines and directions in terms of incentives and subsidies for the sector, technology development, development of sustainable raw material base, regulatory and procedural reforms, and also guidelines for monetary and exchange rate policy,” said FICCI in a statement.

Considering the present slowdown in the manufacturing sector as compared to 11.3 per cent growth witnessed in 2006-07, the Chambers estimates that the share of manufacturing in the GDP would not increase from the current 16 per cent to 25 per cent by 2015, as targeted.

“For the quarter ending December 2007, raw material expenses of the manufacturing sector grew by 17.1 per cent and expenses on wages and personnel grew by 22.6 per cent vis-À-vis last year. Also, expenses on interest payments grew by 28 per cent in the last quarter. The manufacturing sector witnessed one of the lowest growths in its profits in the last two years,” FICCI observed.

The chambers has suggested manufacturing investment regions (MIRs) policy to be extended to capital goods, auto components as it prevails in other sectors such as petrochemicals (PCPIR), electronic hardware and textiles.

It has also sought a monetary and a fiscal policy that can fuel the growth in the industry.

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