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A day after assuming office, Commerce & Industry Minister Nirmala Sitharaman on Wednesday raised concern at sluggish growth in the manufacturing sector.
During an internal meeting with her departmental heads, Sitharaman, who was until recently the Bharatiya Janata Party's (BJP) vociferous spokesperson, was visibly upset over a fall in manufacturing production in 2013-14, officials in the ministry told Business Standard on condition of anonymity.
She also expressed worries over a lacklustre response to the National Manufacturing Policy (NMP), which was released in 2011, they said.
It is learnt that this could be the new government's first indication that it might review the NMP in an effort to review the slackening growth of the economy and boost infrastructure.
Manufacturing, which constitutes over 75 per cent of the Index of Industrial Production, declined 1.2 per cent in March against a year-on-year growth of 4.3 per cent last year. During the 2013-14, the manufacturing sector contracted 0.8 per cent compared to 1.3 per cent growth earlier, official data showed.
Amid speculations that the Department of Industrial Policy and Promotion (DIPP) might go to the finance ministry, it was confirmed to officials by the end of the meeting that it would remain with the commerce & industry ministry.
On Wednesday, Sitharaman went through two separate presentations by DIPP secretary Amitabh Kant and commerce secretary Rajeev Kher.
Apparently, Sitharaman took stock of the activities being undertaken in the ministry. Kant also briefed the minister on the challenges being faced by the industry in terms of delay in clearances and approvals, besides problems arising out of outdated labour laws.
Kant, it is learnt, also apprised the minister of pending proposals on allowing foreign direct investment in railways and real estate to which she did not express much interest. Officials said she did not want to discuss those proposals at least for the time being.
Kher, on the other hand, made a presentation on the state of the country's merchandise exports coupled with the draft Foreign Trade Policy (2014-2019), state of the special economic zones and the problems faced by them and on the pending free trade agreement.
