CII urges govt to unveil Manufacturing Policy

NEW DELHI, INDIA: The Confederation of Indian Industry (CII) on Thursday urged the government to unveil the National Manufacturing Policy announced earlier, which is aimed at creating 100 million jobs in the next decade by increasing the share of manufacturing to the GDP to 25 per cent.

The policy, if implemented, would act as real growth driver for manufacturing in particular, and economy as a whole and bring back business confidence, both at national and international level, said a press release.

Also read: CII Business Confidence Index for SMEs



According to a recent report by the CII, business confidence index has witnessed a sharp decline that could make a negative impact on new investment plans. “There is urgent need for major policy announcements and measures from the government to enhance business confidence in the country,” said Chandrajit Banerjee, director general, CII.

During recent interactions, senior policy makers assured the industry that necessary steps would be taken to boost business confidence.

Confidence building measures like cabinet clearance for big investments, cabinet approval of important bills, etc have already been taken reflecting the government’s resolve to create better domestic business environment. This assumes importance in the backdrop of an uncertain global business environment.

Also read: Lack of enthusiasm bane of SMEs

The government and industry need to work together to make a comprehensive and sustainable strategy and action plan for growth in manufacturing. This is critical to sustain good economic growth in the country, Banerjee said.

The growth of manufacturing sector has been hampered over the years by reasons like inadequate infrastructure, high transaction and compliance costs, stringent exit mechanisms, rigid labour laws, lack of skilled human resource, and low productivity to etc.

“We understand that the government has an action plan to address many of these impediments to growth in the proposed National Manufacturing Policy. Now is the time to quickly announce the policy without delay as it is critical to ensure high growth of manufacturing in the country and meet India’s growth aspirations, ”Banerjee concluded.