The Parliamentary Standing Committee on Commerce has suggested that the government in order to lift industrial share to 25% of the GDP should infuse modern, green and latest technology to its industrial/manufacturing base, more so, in the SME sector. However, the committee did express apprehension over the ambitious goals of the national manufacturing policy (NMP) 2011 of enhancing the share of manufacturing in GDP to 25 per cent and creation of 100 million jobs over a decade and said that this could be adversely affected given the extremely slow pace of progress made under the policy.
It also highlighted that the scheme for implementation of NMP was yet to be notified and that its notification was pending approval of all the components under the policy. The committee noted that capacity constraints in critical infrastructure sectors such as electricity and railways was the reason responsible for reduced profitability of manufacturing industries which are logistics intensive, while it also pointed that complex and complicated regulatory regime including land, environmental clearances, supply of critical inputs like coal, gas that increased risks of project implementation also led to low private sector investment in manufacturing activities in the recent years.
The committee suggested that Department of Industrial Policy and Promotion (DIPP), the nodal agency for the industrial health of the country to vigorously tackle all infrastructural bottlenecks and the discouraging business environment existing in the country. It suggested DIPP to closely monitor the projects' progress and pursue the concerned ministries and departments and states for expeditious action so as to ensure there are no cost/time overruns.
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