Concerned over the low share of manufacturing sector in the gross domestic product (GDP), India will soon unveil a National Manufacturing Policy to push it to 25 per cent of GDP by 2020 from 17 per cent at present.
The new policy would be moved before the Union Cabinet soon, Commerce and Industry Minister Anand Sharma told journalists accompanying Prime Minister Manmohan Singh on his visit to Hanoi.
“This is a major concern for India. When we want to be a major player in the manufacturing sector, we are concerned about the share of manufacturing sector in the overall GDP,” he said.
He said the share of the manufacturing sector had remained close to 17 per cent, where it was in 1991 in terms of percentage, whereas all the other economies – emerging and developed – don’t have the share of manufacturing at less than 25-26 per cent of their GDP.
“Our objective is to take it to 25 per cent by 2020. That is why we are coming out with the National Manufacturing Policy,” the minister said, adding: “We intend to move the Cabinet note soon.”
He said the intention was to ensure integrated manufacturing zone development, particularly green field industrial townships.