Manufacturing to Register 9% Growth by End of this Fiscal — India Second in Terms of Manufacturing Competitiveness: Anand Sharma Delivers Key Note Address at 1st Green Manufacturing Summit

Press Information Bureau

Government of India

Ministry of Commerce & Industry

17-March-2011 15:8 IST

Manufacturing to Register 9% Growth by End of this Fiscal — India Second in Terms of Manufacturing Competitiveness: Anand Sharma Delivers Key Note Address at 1st Green Manufacturing Summit

Shri Anand Sharma while delivering the key note address at 1st ‘Green Manufacturing Summit’ on product, process and technology, here today stated that: “The global economic landscape has witnessed a dramatic transformation in the last two decades, which has had a profound influence on the nature and spatial spread of manufacturing. China and India, home to nearly 40% of world’s population and over 800 million strong middle class is changing the demand side of the equation. Enhanced mobility of resources and a globalization of financial markets have had important implications for manufacturing”. Value added manufacturing, today, goes well beyond the traditional assembly line manufacturing models and information technology has expanded the limits of manufacturing, opening up new avenues through artificial intelligence and advances in nano-technology and material science research. It has also allowed the creation of ‘dis-assembly line’ and opened the gateway for collaborative manufacturing on a global scale, he added.

. Highlighting the need and importance, Shri Sharma said, manufacturing, contributes to about 16% of our GDP, despite having recorded unprecedented growth of 11% over the last few years. This year, estimates suggest that we will end the financial year at a growth of about 9% in manufacturing. In terms of manufacturing competitiveness, we are ranked 2nd in the world. The Government views the policy thrust of manufacturing not just as an economic imperative, but a crucial social imperative integral to our Inclusive Growth agenda. He further reiterated, “Manufacturing sector engages 11% of India’s workforce and contributes to a fifth of our GDP and nearly half of our exports. In the next decade, 100 million people are set to join the workforce and the manufacturing sector alone holds the potential of providing gainful employment to these people. We are now ready with a draft Manufacturing Policy which is shortly going to the discussed in the High Level Committee on Manufacturing to be chaired by Prime Minister. The key objective of this policy will be to enhance the sectoral share of manufacturing to at least 25% of GDP within this decade and to double the current employment in this sector”. In the next 5 years, India will witness investments of nearly US$ 200 billion in manufacturing, he added.

Shri Sharma said that Asia will become fulcrum of global growth having a distinct advantage of demography and the availability of rich human resource and a large trained scientific manpower which has ability to innovate and adapt new technologies. He during his deliberation emphasized that, ASEAN has also re-oriented itself effectively as an integrated value chain of manufacturing and in certain segments, especially electronic hardware manufacturing and automobile engineering; they are a force to reckon with. He further added: “The Indian economy has seen momentous changes, which has been spearheaded largely by a revolution in the service industry. It is a tribute to the intellectual genius of our people that software development has become synonymous with India.”

Shri Sharma while emphasizing the need of Green Manufacturing said, India has made a commitment to follow a low carbon growth strategy which will be a key agenda in the 12th Five Year Plan. There is an emerging global market for environmental goods and services, estimated at US $ 190 billion, which will see an annual growth of 15%. Whatever name we call it--- environmentally conscious manufacturing or environment friendly manufacturing or sustainable manufacturing or green manufacturing, the primary objective remains the same --- to design and deliver products which minimize the negative effects on environment through green production, use and disposal. He further said, “Eco-innovation” is being seen as a driver of growth. But, the whole issue of environmental technologies needs to be looked at in the context of the monumental challenges of development and poverty alleviation.

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DS