India needs to adopt a policy of manufacturing-led growth to provide jobs required for economic expansion, which is currently being driven by the services sector, DIPP Secretary Amitabh Kant said today.
"Job creation is a major challenge in India. Growth in India is largely driven by the services sector and not through manufacturing. India now needs to adopt a policy of manufacturing-led growth in order to create the quantum of jobs required for India's growth," Kant said at the CII's partnership Summit.
The government has launched 'Make in India' programme to attract global investments and boost manufacturing in the country, he said.
One of the key features of this campaign is to make India an easier place to do business and it is in this context, the government has announced series of steps to simplify several rules and regulations.
To attract more investments, the Department Of Industrial Policy and Promotion (DIPP) secretary said that government has relaxed FDI policy in sectors, including Railways, defence and construction.
Speaking at the summit, both William Danvers, Deputy Secretary General, Organisation for Economic Cooperation and Development as well as Li Yong, Director General, United Nations Industrial Development Organisation highlighted the need for India to address issues such as infrastructure and regulatory bottlenecks to attract more investment in manufacturing.
These include reforms in labour laws, land acquisition, tax policies, they added.
Commenting on the status of Delhi-Mumbai Industrial Corridor, Kant said he hoped that soon goods from the Capital would be able to reach Mumbai and loaded onto ships within a short span of time instead of 14 days at present.
Several other corridors are being developed in different parts of India to link industrial centres to ports. They include Chennai Bangalore Industrial Corridor (CBIC), Vizag Chennai Industrial Corridor (VCIC), Bengaluru Mumbai Economic Corridor (BMEC) and Amritsar Kolkata Industrial Corridor (AKIC).
Speaking at the occasion, Martin Hamilton-Smith, Minister for Investment and Trade, South Australia, stated that his state was ready to support the 'Make in India' campaign.
Smith said that South Australia is a major centre for high-value added manufacturing such as robotics and industrial automation which could help make manufacturing processes more efficient.
UK-India Business Council Chair Patricia Hewitt said the UK can extend support in areas such as smart cities, rejuvenation of older cities and embedded services in manufacturing sector.
FDI in India during April-October grew by 26 per cent year-on-year to USD 17.34 billion.
