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Dr. Ashwani
Kumar, Minister of State for Industry, has stated that the
Government aims to increase the share of manufacturing sector in GDP
from 17% to 25% and eventually to 33%. While delivering the keynote
address at the 3rd session of the Indo-US Economic
Summit, which concluded here today, he emphasised the importance
of Manufacturing in India’s growth story. Manufacturing contributes
about 53% of India’s exports and receives more than two-thirds of
the total foreign investments. It accounts for 11% of the workforce
of about 45 million.
Dr. Kumar
counted the many advantages that India offers as a manufacturing hub
and an investment destination. In this regard, he emphasised that
the government is taking all necessary steps to simplify the
procedures with respect to investing in India, getting requisite
approvals etc. He quoted studies, which have shown that a
full-fledged manufacturing facility in India can be set up at 60-80%
of the cost in a developed market. In particular, the Minister
highlighted the importance of small & medium enterprises (SMEs).
“Strengthening the SME sector is one of the principles which the
Ministry of Commerce and Industry is following; ultimately the SMEs
will be the backbone of a strong Indian economy”, he said.
Referring
to Indo-US economic ties, the Minister stated that exports of
manufactured goods to the United States were now rising faster in
percentage terms than China’s, albeit from a much smaller base. A
majority of US firms, which have invested in India, have reported
double-digit year-on-year growth. He also quoted a McKinsey Global
Institute study, to highlight that when US companies move their
business services offshore to India, the economic benefits accrue to
both nations.
The
2-day (September 13-14) Summit was jointly organised by the
Indo-American Chamber of Commerce (IACC) and supported by the
Department of Industrial Policy & Promotion (DIPP), Ministry of
Commerce & Industry
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