PM's meet on manufacturing policy postponed

The high-level meeting on formulating India's manufacturing policy, which was scheduled tomorrow, has been postponed to June 9.

The meeting was to be convened by Prime Minister Manmohan Singh with his senior ministers amidst inter-ministerial differences on the issue of flexibility in labour and environment laws, as suggested by the Industry Ministry.

It has been more than a year since the Industry Ministry is trying to evolve a consensus on the issue.

The draft manufacturing policy had suggested National Manufacturing Investment Zones (NMIZs), where employer would enjoy flexibility from labour and environment laws. The NMIZs would be big enclaves which could even subsume special economic zones.

 

"Tomorrow's meeting has been rescheduled because of certain other pressing matters before the government," an official said.

India aims to increase the share of the manufacturing sector that contributes over 80% to the country's overall industrial production, from 16-17% to 25-26% of the gross domestic product by 2020.

Likewise, it recommends changes in the environment norms, which at present come in the way of investment.

The policy aims to attract overseas investments besides increasing the share of manufacturing in the economy.