'Manufacturing sector to get prominence in Budget'

New Delhi, Feb 25: The country's manufacturing sector, which already enjoys an exalted status due to its weighted contribution to the gross domestic product (GDP), will get ''due prominence'' in the 2007-08 Union Budget.

This was indicated by Union Commerce and Industry Minister Kamal Nath at a function here last week.

Noting that ''one manufacturing job was equal to three jobs'', he said due to the high growth in the manufacturing sector foreign direct investment (FDI) was coming in to the country.

The Government aims to scale manufacturing growth to 13 per cent next year from 11 per cent at present, resulting in the share of manufacturing in India's GDP, which stands at 17 per cent, going up to 25 per cent.

At a meeting with a delegation of the Japanese Machinery Federation recently, the Minister said highest priority was being accorded to this sector, as job creation was of utmost importance in view of the country's young age profile.

With India steadily emerging as a manufacturing hub of Asia, a number of foreign companies have evinced interest in locating in India. However, infrastructure bottlenecks have often hindered such collaboration.

UNI