Govt plans to step up manufacturing growth
New Delhi, July 5: Finance Minister P Chidambaram today said the government will draw up a new agenda on the basis of the feeddback given by industry to step up the growth rate of the manufacturing sector from the present level of around 9 per cent to 12 per cent per cent per annum.
After an hour-and-a-half long interaction with captains of industry here, Mr Chidambaram said the industry itself feels that the growth rate of this sector can be moved up if a conducive climate is created in this regard.
Briefing the press on the outcome of the meeting, Mr Chidambaram said the suggestions would be closely examined by the government, which will work out how they can be implemented.
The suggestions of the industry pertained to flexibility of labour laws, improving the performance of the power sector, problems with the mineral and mining policy, skill development, incentivising investment in clusters with high labour intensity, self-certification by industry, national fund for acquiring high technology, and pushing up Gross Fixed Capital Formation in infrastructure.
Industry made out a case for bringing in flexibility of labour laws on the condition that an enterprise should ensure 100 days of employment to a worker. The idea of 100 days of employment was borrowed from the National Rural Employment Scheme, Mr Chidambaram said.
The manufacturing sector continues to be plagued with power shortages, despite the passing of the Electricity Act. The problems in the power sector pertained to Independent Power Producers, high state taxes on power trading and payment securitisation.