For country to grow at 9-10%, Gujarat's manufacturing has to grow at 16%: Kant

India has seen an increase of 35% in foreign direct investment (FDI) in the past few months, at a time when FDI globally had fallen 16-17%

Calling Gujarat the driver of India's manufacturing and exports, Department of Industrial Policy and Promotion (DIPP) Secretary Amitabh Kant on Saturday said if the country has to grow at nine-10 per cent, the manufacturing sector has to grow at 12-13 per cent and Gujarat's manufacturing sector has to clock a 15-16 per cent growth rate.

Kant was here for a roadshow on the upcoming Make in India Week in February 2016 in Mumbai.

Gujarat already accounts for 22 per cent of the country's exports, eight per cent of the gross domestic product (GDP) and 10 per cent of its workforce. He added the index of industrial production (IIP) for manufacturing stood at 10.6 per cent in October, and that India was clocking a 7.4 per cent GDP growth rate, compared to China's 4.5 per cent.
 

"However, for the country to grow at nine-10 per cent, its manufacturing sector has to grow at 12-13 per cent, and of this manufacturing sector in Gujarat has to clock a 15-16 per cent growth rate," Kant said.

With a target of taking the share of manufacturing to 25 per cent of GDP by 2022 from a current 15-16 per cent, DIPP has been aggressively promoting the 'Make in India' initiative. It is hosting a Make in India Week starting February 13 in Mumbai, which is being seen as a flagship event for forging global engagement with Indian industry in the form of partnerships and investments.

Kant said India has seen a jump of 35 per cent in foreign direct investment (FDI) in the past few months, at a time when FDI globally has fallen by around 16-17 per cent.

India has also managed to move up 12 spots in the global ease of doing business index this year, and the target is to make India the 'easiest and simplest' place to do business, Kant added.

Talking of initiatives taken by the Gujarat government to bolster the initiative, Arvind Agarwal, additional chief secretary, department of industries and mines, the Gujarat government, said, "We are very close to come up with a policy on aerospace and defence along with one on electronic system design and manufacturing (ESDM). We already have a tourism policy in place, which accords industry status to the tourism sector." Besides, Gujarat has seen a huge response to the already announced textile policy, drawing investments worth Rs 8,000 crore, and another Rs 7,500 crore are in the pipeline, Agarwal claimed adding that the expected total investment in the sector in the coming few years is around Rs 25,000 crore.

Meanwhile, Gujarat would be setting up the largest pavilion at the Make in India Week, he claimed. The event as such is expected to see participation of over a 1,000 companies and delegates from over 60 countries.

Prime Minister Narendra Modi will inaugurate the event in Mumbai on February 13.