Prime Minister Manmohan Singh today made a case for giving fresh impetus to manufacturing sector, a move which industry said is essential to boost exports and achieving double digit economic growth.
"Our medium term target is to achieve a growth rate of 10 per cent per annum. However, its achievement will require determined efforts to increase investment in social and economic infrastructure...And give a fresh impetus to the manufacturing sector," Singh said in his press conference to mark the first anniversary of UPA-II.
For the year 2009-10, industrial output grew by 10.4 per cent, up from 2.8 per cent in the previous financial year.
Commenting on Prime Minister's statement, industry body FICCI said that there is a need for a blue-print on manufacturing.
"India’s industrial sector is performing rather robustly and this can be further enhanced through a suitable manufacturing policy," FICCI President Rajan Mittal said.
Expressing similar views, Assocham President Swati Piramal said "fresh impetus on manufacturing is essential to push the economy to higher growth trajectory of 10 per cent".
The manufacturing sector can contribute to growth in exports too, she added.
In a move to boost manufacturing sector and increase its share in GDP from the current 15 per cent to 25 per cent by 2022, the Centre has proposed National Manufacturing and Investment Zones, which could almost be industrial towns subsuming special economic zones, export-oriented units, and domestic tariff areas.
Planning Commission Deputy Chairman Montek Singh Ahluwalia has also said that during 2010-11, factory output is likely to be in double-digit.
Manufacturing accounts for nearly 80 per cent of the IIP.