Identifying manufacturing as one of the thrust areas for the 12th Plan (2012-17), the department of industrial policy & promotion (DIPP) under Union commerce and industry ministry has urged the Odisha government to come out with a state specific manufacturing policy.
The DIPP has suggested that the state specific manufacturing policy should list the targets to be achieved by 2016-17.
“The policy should contain indicators like percentage contribution of manufacturing to GSDP (gross state domestic product), investment required to achieve the targets of growth rate and creation of additional employment opportunities in manufacturing during the 12th Five Year Plan,” Saurabh Chandra, secretary - DIPP wrote to Odisha chief secretary B K Patnaik.
The state specific manufacturing policy may also contain special incentives for the MSME (micro, small & medium) sector and measures for improvement in business regulatory environment and improvement in infrastructure, particularly for power and transport.
The 12th Five Year Plan envisages that manufacturing sector needs to grow by eight to 10 per cent during the plan, providing additional employment in the sector to be able to achieve the GDP (gross domestic product) growth target of 8.2 per cent.
The Government of India’s National Manufacturing Policy-2011 envisaged increasing the share of manufacturing to 25 per cent in the national GDP and creation of 100 million additional jobs by 2025. The DIPP is of the opinion that to improve performance of the manufacturing sector, the Centre and states need to work in tandem in areas like business regulatory environment, implementation of infrastructure projects, industrial relations and promotion of MSMEs.
In Odisha, the share of industries sector to stateGSDP is set to fall from 25.78 in 2011-12 per cent to 24.22 per cent in 2012-13, according to the latest Economic Survey for the state. The industrial sector is projected to grow only at a modest rate of 2.54 per cent hit hard due to global economic slowdown, disruption and other mining activities factors.
The share of the manufacturing sub-sector is expected to 63.4 per cent and that of mining and quarrying sub-sector at 24.3 per cent. While manufacturing is targeted to grow at a modest 3.35 per cent, mining growth is projected to remain stagnant in 2012-13 at 0.02 per cent though faring better than the negative growth of 5.63 per cent that the sector logged in 2011-12.
