Kamal Nath asks manufacturing sector to improve contribution

Bangalore, Jan 18 (UNI) To achieve the goal of ten per cent GDP growth, the manufacturing sector should contribute 25 per cent to the GDP as against the current one per cent, Union Commerce and Industries Minister Kamal Nath said today.

Inaugurating the 13th edition of IMTEX-2007, South and South East Asia's largest exhibition of machine tool and manufacturing solutions here, he said the country faced challenges in the manufacturing sector which came in the way of it becoming one of the powerful economies in the world.

Mr Kamal Nath said that with India emerging as a hub of manufacturing activity in Asia and signing several trade agreements with various trading blocks and countries, it was all set to become the strategic gateway to the Asian market. ''The story of Indian growth lies in the fact that manufacturing sector triggers a multiplier effect on the service sector as every one person employed in the sector creates jobs for three more in the service sector.'' Expressing happiness at 50 per cent of the exhibitors in IMTEX-2007 being overseas participants, the Minister exhorted them to make use of the immense opportunity the country offered for investment along with a huge talent pool.

With an annual growth of 15 per cent in the Machine Tool industry the sector was going in the right path and the immediate need was to infuse a little momentum that would derive the set results, he said.

Karnataka Chief Minister H D Kumaraswamy, who also spoke, said the State, which had emerged as the knowledge capital of the country, also carried the distinction of hosting 60 per cent of the Indian machine tool industry. The State Government had taken several steps to develop various industry clusters in the State to give a cushion effect to the manufacturing sector. The State was pursuing a pro-active industrial policy to boost industrial activities and urged the Union Government to extend more support in its endeavour.

IMTEX and Tooltech 2007 was a business-to-customer event with the participation of over 1,200 exhibitors from 25 countries. It was organised by the Indian Machine Tool Manufacturers' Association (IMTMA) and the total value of exhibits was around Rs 300 crore.

UNI