Ten Point Strategic Agenda to boost Manufacturing Sector

05 May '08

5 min read

Working towards a National manufacturing Policy, boosting the capital goods markets, opening up strategic sectors and developing visionary leadership, the Confederation of Indian Industry (CII) is embarking on a Ten Point Strategic Agenda this year to facilitate the Manufacturing Sector in achieving and sustaining 25 per cent share of the GDP by the year 2020.

This new, tactical approach evolved by the CII is aimed at taking the manufacturing sector up from its current range of 15-17 per cent of the GDP to 25 per cent over the next 12 years.

Traditionally, manufacturing has enjoyed a 'cost advantage' due to labour arbitrage, but that advantage does not exist any more. CII plans to meet this challenge through this new multifaceted approach.

A key element of the strategic agenda is working towards the announcement of a National Manufacturing Policy. So far there is no clear definition of Manufacturing in the Policy framework of the industry.

But with imports becoming a large component in sectors such as capital goods, and overtures to India to open up to Remanufactured Products, defining Manufacturing and giving a roadmap to strengthen the sector is now imperative and CII's Manufacturing Council is all set to work in this area.

A key bottleneck to meet the infrastructure requirements is energy. CII would be working towards opening up of strategic sectors such as Coal.

CII has welcomed the Coal Report which has been accepted by the Ministry of Coal and the Cabinet. It would put into place an Apex Task Force on Coal to facilitate the implementation of this report.

Dr Jamshed J Irani, Chairman, Council on Affirmative Action, CII & Director, Tata Sons who was also a member of this report would lead this initiative.

Indian Capital Goods sector needs a boost. India has become a large importer of capital goods and it is essential to build and retain competitiveness in manufacturing of strategic equipment as imports could lead to jeopardizing National Security.

CII's new initiative focuses on this area and also on new opportunities in other sectors such as Space, Aerospace and Advanced Engineering and Manufacturing.

A new Mining Policy is on the horizon and implementing this policy would be key. CII proposes that the Steel and Mining industry work together to roll out guidelines that would lead to a win-win solution.

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