Centre seeks status of Odisha's manufacturing policy

DIPP has Identified manufacturing as one of the thrust areas for 12th Plan (2012-17)

The Central ministry of commerce & industry has sought information from the Odisha government on progress made with respect to framing a state specific manufacturing policy.

"State specific plans for manufacturing are needed for improving the sector's performance and increasing its share in the national GDP (Gross Domestic Product) in line with the National Manufacturing Policy, 2011. The response from your state is still awaited. You are requested to kindly intimate about the progress made in formulation of such a policy/plan by your state at the earliest”, Vinita Aggarwal, economic adviser to department of industrial policy & promotion (DIPP) under Union commerce & industry ministry wrote to Parag Gupta, principal secretary (industry), Odisha.

An industries department official said, “The MSME department has prepared a draft of the manufacturing policy. We have asked the department to intimate us on the progress made at the earliest.”

Identifying manufacturing as one of the thrust areas for the 12th Plan (2012-17), the DIPP under Union commerce and industry ministry had urged the Odisha government to come out with a state specific manufacturing policy.

The DIPP had suggested that the state specific manufacturing policy should list the targets to be achieved by 2016-17.

The state specific manufacturing policy may also contain special incentives for the MSME (micro, small & medium) sector and measures for improvement in business regulatory environment and also improvement in infrastructure, particularly for power and transport, it suggested.

The 12th Five Year Plan envisages that the manufacturing sector needs to grow by eight to 10% during the plan, providing additional employment in the sector to be able to achieve the GDP growth target of 8.2%.

The Government of India's National Manufacturing Policy-2011 envisaged increasing the share of manufacturing to 25% in the national GDP and creation of 100 million additional jobs by 2025.

The DIPP is of the opinion that to improve performance of the manufacturing sector, the Centre and states need to work in tandem in areas like business regulatory environment, implementation of infrastructure projects, industrial relations and promotion of MSMEs.