 "Companies need to focus on innovation to boost mfg sector: NMCC")
"If you do not embrace innovation in manufacturing, increasing share of the sector in the country's GDP and creation of jobs will not be possible," said National Manufacturing Competitiveness Council (NMCC) Member Secretary Ajay Shankar, at CII's 'Manufacturing Innovation Conclave'.
The National Manufacturing Policy aims at increasing contribution of manufacturing to the national GDP from current 16% to 25-26% by 2025 and also creating 100 million jobs in the next decade.
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The NMCC was set up by the government to suggest ways to enhance the competitiveness of manufacturing sector in the country.
Shankar said at a time when the country's economic growth is decelerating due to global economic uncertainties, Indian corporates should invest more in research and development activities.
"We should aspire to be the Germany of the Asia. We have to think beyond cost cutting. Wage arbitrage is no longer a medium to grow. Corporate India really needs to think hard and put innovation in the centre...Innovation has to come to the central process in manufacturing," he added.
He also said that small and medium enterprises should encourage innovation in their units as "innovation is not the prerogative of large firms".
Further, he added that the current rupee fall would benefit manufacturing sector.
Continuing its slide, the rupee weakened further by 13 paise to trade at Rs 59.70 against the US dollar in early trade today.
Economic growth rate slipped to a decade low of 5% in 2012-13 on account of poor performance of farm, manufacturing and mining sectors.