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Mfg must contribute more for double-digit growth: FM

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 12:41 AM IST

Finance Minister Pranab Mukherjee today said the manufacturing sector has to contribute more to achieve double-digit GDP growth.

The economy is expected to grow 7.2 per cent the fiscal ending today and is projected to expand by 8.5 per cent next fiscal and 9 per cent the year after.

"We need to increase the contribution of manufacturing to GDP to achieve double-digit growth to provide more employment," Mukherjee said here today while releasing a book on Maruti's journey since inception.

The economic growth slowed down to 6.7 per cent last fiscal after growing by over 9 per cent in the previous three financial years. Prime Minister Manmohan Singh had said the country should aim at double-digit growth during the 12th Plan (2012-17).

Currently, the contribution of manufacturing to GDP stands at around 15 per cent, while services account for around 60 per cent.

The finance minister said the growth in the automotive industry shows the potential of the country's manufacturing sector. "Today, we are exporting nearly half-a-million cars and components worth of $4 billion," he said, adding the country has become a global hub for small car manufacturing.

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The book, titled 'The Maruti Story' is co-authored by Maruti Suzuki India chairman RC Bhargava and journalist Seetha.

Praising the Japanese work culture, Mukherjee said efforts must be made to reduce disparity between workers and management, and should not blindly follow the American pratice.

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First Published: Mar 31 2010 | 9:32 PM IST

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