Expressing concern over the delay in industrial project DMIC as well as poor offtake of a startup fund, a parliamentary panel has asked the government to push these initiatives for boosting manufacturing.
The panel in a report said improving the performance of these initiatives will spur capacity utilisation of the industry which has slowed following the rollout of Goods and Services Tax on July 1.
The standing committee on commerce noted that capacity utilisation of the manufacturing sector has remained "stagnant" over the last four years.
After the implementation of GST and "uncertainties following that", the capacity utilisation has been "subdued", it said.
The committee recommended that the commerce and industry ministry take effective measures to improve the capacity utilisation of the sector and realise its full potential.
On the industrial corridor projects, it said the progress in Delhi-Mumbai Industrial Corridor (DMIC), which started in 2007, has just entered phase 1 and other such projects are only in the planning stage.
"The committee finds the progress under the industrial corridors to be sluggish," it said adding the projects should be accelerated to provide a thrust.
It also stated that the ministry should look into the "poor" offtake of funds from 'Funds of Funds' and take remedial actions.
Funds of Funds was created to provide financial assistance to startups in the country.
The report added hat 6,981 startups have been recognised as on February 6, of which only 99 have been funded and 82 certified for claiming tax exemptions. The committee is concerned about this huge gap, it said.
It suggested that measures be taken to ensure genuine entrepreneurs are provided all needed support.
The panel also asked the ministry to conduct a study on the impact of foreign direct investment on the MSME sector.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)