With the government aiming to finalise the new industrial policy within the current financial year, the Department for Promotion of Industry and Internal Trade (DPIIT) is seeking specific inputs from ministries and states on focus areas to boost manufacturing and private investment.
“We wanted every ministry to specifically suggest and lay out, in view of the five-year vision document they have been preparing, what schemes they want to put in this policy. This was discussed in the last meeting that took place with them (two weeks ago),” DPIIT Secretary Guruprasad Mohapatra told The Indian Express.
“Some of the states have also not responded the way we wanted. We need specific inputs from them on what they want to focus on. Basically, we want to take them on record, so we need to sit with them and discuss what they want. Those kinds of discussions will start now,” he added.
“This industrial policy is still in the making. It is still in an infancy stage. A lot of material has been collected and a lot of consultations have been held, but there is still more to be done,” Mohapatra further said.
The new industrial policy, which will come over two decades after the last policy was implemented in 1991, has a “wider” focus, especially since manufacturing is expected to account for 20 per cent of India’s $5-trillion economy target, according to Mohapatra.
“The latest draft covers a lot more areas,” said the DPIIT Secretary.
“The broad goal is to give a boost to manufacturing, which has many complexities. It is now embedded in the services sector and manufacturing is also getting more automated. So, we also need to keep employment in mind,” he added.
The government is looking to resolve issues related to ease of doing business, including developing clusters for backward and forward linkages in the supply chain.
Last week, the government organised an inter-ministerial workshop on 14 priority sectors that would need a fillip to boost manufacturing to $1 trillion, including capital goods, electronics, food processing, metals and mining, tourism and renewable energy.
Work is on to understand how to bring in more policy incentives to attract investment, how to make the process easier for these sectors and how to make credit available to them at an affordable rate.
“These are the sectors in which we expect a lot of traction to happen and so we are looking at how to create the enabling framework. The idea is to bring more private sector investment in all these priority sectors,” said Mohapatra. “It is a very wide ecosystem we are working on,” he added.
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