Manufacturing sector key to sustainable growth: Chidambaram
Mumbai,
Dec
21:
Asserting
that
manufacturing
holds
the
key
to
sustainable
economic
growth
in
the
long
term,
Union
Finance
Minister
P
Chidambaram
today
exhorted
Industry
captains
to
restore
the
primacy
of
the
manufacturing
sector
in
the
Indian
economy''.
Speaking
at
a
function
to
mark
70th
year
of
existence
of
Larsen
and
Toubro
here,
Mr
Chidambaram
emphasised
need
for
the
growth
of
manufacturing
sector
in
the
country,
he
said:
''20 to 30 years from now manufacturing industry will be the biggest job creator and we need to focus on the sector as there will be burgeoning young work force in the country, which the service industry alone can't hold'' Drawing a parallel between the economy of two countries India and China, the Finance minister said India scores over China in areas such as human resource, trained labour, entrepreneurship and services.
Whereas China is leading in basic infrastructural areas such as land, water, electrcity, wages which are by and large administered prices, in India all these prices are driven by market forces, he said. He pointed out that biggest stumbling block in the growth of manufacturing sector in the country is the delay in implementation of infrastructural projects. ''301 projects are delayed by a month to ninty six months which has a cost overrun of Rs 48,967 crore'' he said.
He described L&T as a national sector company and urged other companies to follow the same path in nation building exercise. He dared Indian companies to ''Dream Big'' and implement projects of bigger scale which are beneficial to the country.
Of the country's total GDP, 55 per cent comes from service sector, 17 per cent from agricultural sector and the remaining 28 per cent comes from manufacturing sector.
UNI