Kamal Nath asks manufacturing sector to grow by 15pc a year

New Delhi, Feb 13 (UNI) Commerce and Industry Minister Kamal Nath today outlined the new growth strategy for the Indian manufacturing sector at a rate of 15 per cent a year to achieve the target of 25 per cent share in the gross domestic product (GDP) from 17 per cent at present.

The Minister was speaking at the inaugural of the 17th International Engineering and Technology Fair, organised by the Confederation of Indian Industry (CII) at Pragati Maidan here this morning.

Tracing the trajectory of the engineering goods sector as the fastest-growing sector of the industry, he said it is also a sector of high employment. One job created in the manufacturing sector leads to three more new jobs in the services sector. ''Our intention is to ensure that the share of manufacturing in GDP moves from 17 per cent to 25 per cent,'' the Minister said.

The sector, he said, has expanded and diversified. In fact, India has a low cost advantage due to the synergy of its large workforce with technology and innovation, he said.

The country can attract 25 per cent of the global Engineering Process Outsourcing industry, and has great potential in Knowledge Process Outsourcing as well. The huge domestic market and the need for infrastructure, pegged at 330 billion dollars, indicate that there is great potential for achieving the growth target of 15 per cent in manufacturing.

Congratulating the CII for hosting the event, in which Japan is the partner country, he pointed out that the concurrent shows and exhibitions provide a useful platform for the engagement of Indian industry with overseas business. This was especially true for Japan, where the initiatives of the two Prime Ministers had laid out a roadmap for economic cooperation.

Speaking on behalf of the Minister of Economy, Trade and Industry (METI), Mr Toshiaki Kitamura, Vice Minister for International Affairs, METI, Japan, who was the special guest at the inaugural, said Japan was delighted to be the partner country for the second time at IETF.

Noting that India-Japan relations had never been better or closer, he said FDI from Japan to India has been growing at 60 per cent for the past two years. This is reflected in the high participation of Japanese companies at the IETF.

Japanese business is excited about the Delhi-Mumbai industrial corridor, a mega industrial zone that will attract investments and promote trade, the Vice Minister said, adding that India and Japan share a common vision for regional economic cooperation and are participating together in the 16-member Asian community.

Mr Osamu Watanabe, Chairman, Japan External Trade Organisation (JETRO), in his address, said Japan has brought many companies, including small and medium enterprises, in leading-edge technology to the Fair. He stated that JETRO is keen to take part in India's development and has started a business support centre in New Delhi to facilitate Japanese investments.

CII President R Seshasayee said the re-engagement of India and Japan had commenced with the visit of the Japanese Prime Minister in December.

''IETF will propel us to a new orbit of interaction,'' he commented.

Mr Ajay Shriram, Chairman, CII Trade Fair Committee, in his welcome address, said IETF this year would cover 50,000 sq m and has nine concurrent shows namely Technovation 2007, Automation and Instrumentation 2007, SAFE 2007, IREE 2007, Enterprise 2007, Biotech 2007, Partmart and Autocare 2007, IETF Global 2007, The India Infrastructure Show 2007.

More than 30,000 business visitors have confirmed their attendance for the biennial exhibition of engineering goods, including 10,000 from overseas.

UNI