India to be global hub for textiles, leather: FM

Replicating the revolution of the auto industry, the government is planning to make India a global manufacturing hub for other sectors like textiles, leather, petroleum, food processing and handicrafts.

"We will become a global manufacturing hub for small cars in the next 3-5 years," Finance Minister P Chidambaram said, adding: "We would emulate this success story in other sectors to become top global three manufacturing centres."

Winding up the discussions in the Lok Sabha on the budget, Chidambaram said the auto revolution that is unfolding in the country has gone unnoticed.

 "If every second toy and third shoe in the world are made in China, why can't we emulate these examples," he wondered, asking people to throw away "ideological and political blinkers" while promising all help in this endeavour.

Asserting that growth alone was the best antidote to poverty, Chidambaram said the government has been able to allocate more resources for its flagship programmes and infrastructure due to over Rs 50,000 crore additional revenue mobilisation annually without coercive tax measures.

"Never in the past, the state governments were flush with cash," he said appealing to them to spend pn various social sector programmes to boost the high growth momentum.

Identifying the power sector as a major impediment to industrial development, Chidambaram said contracts will be awarded by this year-end for the five ultra mega power projects of 4000 MW each with a total investment of about Rs 90,000 crore to make up for the "lost ground" in the last few years.