IACC recommends rollover of Technology Upgradation Fund to 2010

New Delhi, Feb 19 (UNI) The Indo-American Chamber of Commerce (IACC) has asked the Government to rollover the Technology Upgradation Fund Scheme (TUFs) to 2010, instead of March 2007.

''The rollover of technology upgradation fund will facilitate induction of state-of-the art technology in the manufacturing sector,'' IACC said today.

It added with India's GDP growing at almost nine per cent per annum, it becomes imperative to focus on the manufacturing sector for sustained development.

India's manufacturing landscape has changed dramatically. The manufacturing sector has witnessed a robust growth of 11.3 per cent as compared to 9.1 per cent the year before. To sustain a 10 per cent growth, government must continue to accord the highest priority to manufacturing, IACC said.

The manufacturing sector emerged as the key to meet the 9 per cent growth target in the 10th five year plan. The sector offers the highest employment potential.

Besides, the chamber also recommended that Over the Counter Exchange of India (OTCEI) which allows SMEs access to the stock market should be revived.

''Revitalising OTCEI will provide SMEs much needed access to the stock market to raise capital,'' IACC opined.

It added there are numerous constraints to growth in manufacturing which include paucity of natural resources and highly skilled manpower, poor infrastructure and inefficient regulatory mechanism. Besides, high interest rates and taxes are other problems plaguing this sector.

''Government needs to lower taxes and bring in tighter fiscal and monetary policy to address these challenges to emerge as a manufacturing leader,'' the chamber said.

UNI