The Hindu Business Line : Manufacturing competitiveness council okayed

THE Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of a National Manufacturing Competitiveness Council (NMCC) to energise and sustain the growth of the manufacturing sector.

This is part of the proposals put forward in the National Common Minimum Programme. Speaking to newspersons, the Finance Minister, Mr P. Chidambaram, said NMCC would be under the Ministry of Commerce and Industry and would have members from the other Ministries concerned, presidents of industry associations, representatives of research and management institutes, economists and young corporate professionals.

He said that the setting up of the NMCC was based on the understanding that economic reforms, even though calibrated, have exposed the Indian manufacturing sector to greater domestic and global competition. Sectors such as food processing, textiles and garments, pharmaceuticals, consumer goods and others are expected to benefit from this.

The manufacturing sector growth measured in terms of the index of industrial production (IIP) grew to 14.1 per cent in 1995-96 and declined to touch a low of 3 per cent in 2001-02. Share of industry sector has, after rising from about 25 per cent in 1980s to 27 per cent in 1990s, stagnated at close to 27 per cent in 2003-04. India has a low share of manufacturing contribution of 17 per cent compared to China's 35 per cent.

`Boost to informal sector': The Cabinet also approved the setting up of a National Commission for promoting enterprises in the unorganised sector. The Commission will review the status of unorganised and informal sector in India, identify constraints faced by them in terms of freedom to carry out the enterprise, access to raw materials, financial skills, entrepreneurship development, infrastructure, technology and markets.

"It will suggest measures to provide institutional support to facilitate easy access to these requirements," the Finance Minister said. The Commission will also suggest the legal and policy environment that should govern the informal and unorganised sector for growth, employment, exports and promotion.