 "25 sectors identified for manufacturing boost, says Nirmala Sitharaman")
"We were talking of reviving the manufacturing sector and a languishing economy, of course keeping in mind that the agriculture sector is taken care of. Nearly 25 sectors have been identified to give a push," Commerce and Industry Minister Nirmala Sitharaman said at a function here.
On special economic zones (SEZs), Sitharaman said the government was taking steps to boost exports from these zones by using non-processing areas within them where manufacturing was not taking place at present.
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She said the commerce and finance ministries did not have differences any longer over the minimum alternate tax and dividend distribution tax, which many blamed for the downfall of SEZs.
"SEZs are still contributing to exports. Yes they have problems. But the decline of SEZs has been parallel with the way the economy is declining. Issues related to MAT (minimum alternate tax) and DDT (dividend distribution tax) have been discussed," the minister said.
"We are going to see that the Land Acquisition Act can be an enabler and not a stifler for industry and investors," Sitharaman said and added the National Democratic Alliance government was trying to change it according to industry requirements. She said the government was going to open more sectors for foreign direct investment on the lines of what was done with railway and defence, but the government's stand on multi-brand retailing was unchanged. "When we are opening up key sectors for FDI we are doing it for a purpose," she added. Sitharaman said the idea behind the 'Make In India' campaign was not only to strengthen domestic industry and bolster growth but to build capacities so that India became a credible hub for exports.
"The domestic demand argument is a comfort argument. But capacity building is more important. For example, in the defence sector why can't we export? We are very clear that when we are incentivising manufacturing we want to focus on exports and enter newer markets," she said.
Referring to regulatory hurdles in manufacturing, she said the government was going to make sure that businesses were facilitated, especially in the small and medium enterprise segment, by roping in banks and improving environmental clearances.
"The burden is clearing regulatory roots that have come in over decades. The 'Make In India' campaign is not so much about investment as about changing mindsets," she said.
"We will facilitate anyone who wants to come to India, even domestic investors," the minister said. "Growth without employment is meaningless, so we want to help SMEs with enabling investments, clearing environmental hurdles and facilitating financing," she added.