Welcoming the clearance accorded by a Group of Ministers to the proposed National Manufacturing Policy, industry chamber CII today said the policy will help boost growth of the sector.
The chamber said the green signal given by the minister's panel will pave way for clearance of the policy by Cabinet soon.
A ministers' panel headed by Agriculture Minister Sharad Pawar gave the green signal to the draft manufacturing policy yesterday.
"The industry has been keenly waiting for quick finalisation and announcement of the policy that makes a comprehensive proposal outlining the enablers required to boost manufacturing growth," the Confederation of Indian Industry (CII) said.
The policy aims to enhance the contribution of the manufacturing sector to the country's GDP to 25% by 2025 from 15% at present, besides the creation of 100 million new jobs.
CII said manufacturing industry currently accounts for a meagre 12% of the total workforce in India, which is very low compared to other countries.
"In India, manufacturing contribution to employment generation can increase up to 25-30% if the share of manufacturing to the national GDP reaches 25%," it said.
The sector's growth in India has been hampered due to factors like high transaction and compliance costs, inadequate infrastructure, rigid labour costs and stringent exit mechanisms.
The new policy will address these issues and bolster the confidence of Indian companies, it said.
"Implementation of the policy could go a long way toward generating employment in the country. Announcement of the policy now is critical to raise the falling business confidence," CII President B Muthuraman said.
