Commerce and industry minister Suresh Prabhu on Sunday said the services industry had grown at the expense of manufacturing and agriculture and his government would look at increasing the share of manufacturing to 25 per cent in an expanded GDP.
“The future of India’s GDP growth should come from manufacturing. We need to get new manufacturing ideas into India and identify 6-7 greenfield areas to focus on so that we can leapfrog globally. The ministry has started an exercise to identify these sectors,” he said. “We have to ensure a different kind of manufacturing keeping in mind future of technology, Prabhu added.
He urged the Indian manufacturing sector to be part of the global supply chain and benefit from these linkages. A war room is being created to attend to issues of Fortune 500 companies and make it easier for them to do business here, he said.
Interacting with members of Confederation Of Indian Industry (CII) Pune, Prabhu said unlike China, India’s growth story is private sector-driven. The government is focusing on making it easier for entrepreneurs to do business and reduce the problems they face and India had worked its way to 100 from 130 in the ‘ease of doing business’ ranking, the minister pointed out and added that the next target is to go up to 50. The government will also work on ‘ease of trading’ in India. “All elements of exports will be on one platform and this can be a game changer, Prabhu said.
He also saw a role for big trading houses in expanding India’s exports and creating brand equity, like the Korean and Japanese companies had done in the past. He said there will be a mid-term review of the foreign trade policy. He plans to invite pension funds, sovereign funds and investors to India for round-table talks. FE