Manufacturing policy by year-end: Anand Sharma

The Commerce and Industry Ministry today said a National Manufacturing Policy would be unveiled by the end of the year to promote investment and increase the share of manufacturing to 25 per cent of the GDP by 2022.

"We are working on launching a National Manufacturing Policy by the end of this year and we have already circulated a discussion paper, inviting comments from all stakeholders in this regard," Commerce and Industry Minister Anand Sharma informed a Consultative Committee.

The policy would cater to the problems of the industry and focus on the concept of a National Manufacturing and Investment Zone (NMIZ). The governments aims to increase the sectoral share of manufacturing to at least 25 per cent of the country's gross domestic product by 2022.

With the share of manufacturing stagnant at 15-16 per cent of the GDP, the Department of Industrial Policy and Promotion recently floated a concept paper for creating a policy environment suitable for the manufacturing sector.

The proposed NMIZs, which could subsume SEZs and warehousing zones, may have freedom to downsize the workforce, increase working hours and curtail workers' right to join unions.

"A modern manufacturing sector is essential for the development of the economy and, in particular, our technological base," Sharma said.

The manufacturing industries were particularly affected in the second half of 2008-09 and sectors like textiles, handicrafts and gems and jewellery were hit-hard.