The 8 per cent annual growth target headed for a fresh start on Thursday with the National Manufacturing Competitiveness Council (NMCC) aiming for a greater contribution to GDP from manufacturing.After its first meeting on Thursday, Commerce and Industry Minister Kamal Nath said manufacturing must grow at 12 per cent for the economy to touch the 8 per cent growth.Nath said India lags behind in manufacturing and would meet its potential in the sector only if labour competitiveness and quality issues were addressed. ‘‘The share of manufacturing to our GDP is only 17 per cent — very low compared with China, Malaysia and Thailand, where manufacturing contributes a third or more,’’ Nath said.Manufacturing has grown at an average 6.3 per cent since 1991, far too low to achieve an overall double-digit economic growth. To improve performance, the NMCC, chaired by technocrat V. Krishnamurthy, will interact with the government over Budget 2004-05 and also prepare a long-term strategy paper along with demands and expectations.Nath said some of the Council’s suggestions will be immediately addressed, while others could be considered during the Budget process. NMCC decided that the Budget must ‘‘reward innovation’’ and undertake tax reforms to promote firms that undertake R&D. It will focus on measures that can improve performance of industries in gems and jewellery, textiles, leather and food processing — which it had identified as its key target areas.Govt to clear the air on Press Note 18New Delhi: The government on Thursday assured it will come up with a clear policy on Press Note 18 soon. Commerce and industry minister Kamal Nath told reporters the note may be prospective and include safeguards for Indian companies in joint ventures with foreign firms. ‘‘Very soon we will announce a policy on Press Note 18,’’ Nath told reporters on Thursday.
