Panel initiatives on manufacturing

The commerce ministry and the National Manufacturing Competitiveness Council will soon come up with a national manufacturing initiative, as part of the policy proposal for the Cabinet's consideration.

The Council identified information technology and telecom component manufacturing as a major area of focus.

This was decided at Prime Minister Manmohan Singh's Council on Trade and Industry, which met here today. The meeting was attended by council members Mukesh Ambani, Sunil Mittal, Azim Premji and Rahul Bajaj among others.

"The meeting discussed why Intel has not yet entered India and the incentives that countries such as Malaysia and Vietnam provide," Commerce and Industry Minister Kamal Nath told reporters at a briefing later.

Nath said the meeting also discussed the setting up of 7-8 investment regions spread over 100 km each.

"It was agreed that the Centre would develop connectivity to the regions while the state governments would provide the infrastructure within the regions. Special economic zones could also be developed in the regions," he said.

The minister said that it was also decided that 85 of the 113 suggestions of the Investment Commission would be worked upon. The commission would meet again in six months, it was decided.

The Council expressed concern on the quality of infrastructure available in the country. A host of industry captains, led by National Manufacturing Competitiveness Council Chairman V Krishnamurthy and Investment Council Head Ratan Tata, met the Prime Minister for over two hours.

They told him industry in the country would be able to compete in the international arena only if the government delivers on infrastructure.

Finance Minister P Chidambaram and Deputy Chairman of the Planning Commission Montek Singh Ahluwalia were also present at the meeting where the Council followed up on 54 issues raised by members at the previous meeting held on December 4, 2004.

In his concluding remarks, the Prime Minister asked industries to pay special attention to the issues of employment generation, exploring trade and investment opportunities in a larger neighbourhood and investment in research and development activities.

The Prime Minister said industries should look after the welfare of the working classes as this would aid in improving the climate for investment by contributing to social and political stability.

He also asked them to look at issues such as rural displacement resulting from setting up of big industrial units saying controversy must be avoided in such issues especially in SEZs and industrial parks.