Private sector may get SOPs in lagging states as govt firms up National Manufacturing Mission blueprint
The government is planning to incentivize private sector investment in manufacturing, particularly in lagging states, and encourage the hiring of more women. The National Manufacturing Mission aims to increase manufacturing's GDP contribution to 25% by 2047. Niti Aayog is finalizing a roadmap that includes skill development and strict monitoring, fostering public-private partnerships to achieve these ambitious goals.
iStock New Delhi: The government could incentivise the private sector to set up manufacturing units in laggard states as well as offer sops to hire more women on the shop floor as it firms up the blueprint for the National Manufacturing Mission, said officials privy to the discussions. The mission, announced in the budget for this financial year, is expected to have detailed medium-term and long-term targets, spanning five years and 10 years respectively, to help increase the share of manufacturing in the gross domestic product (GDP) to 25% by 2047 from 16-17% at present, they said.
The Niti Aayog, the government's think tank, which is in the final stages of preparing a road map for the mission, is likely to propose creation of a pool of skilled workforce and a strict monitoring mechanism to oversee progress across identified sectors.Officials said discussions are also on to put in place an overarching body with representatives from the Centre, states and the private sector to ensure all future initiatives in manufacturing are aligned with the government's vision to significantly boost the share of manufacturing in India. The idea is to leverage the expertise of the private sector to drive manufacturing in India, they said. 'The final round of consultations are being done by the Niti Aayog on what the remit and structure of the mission should be,' a senior government official told ET on condition of anonymity. The mission will emphasise a strong public-private partnership, with the private sector playing a lead role in policy interventions, implementation and monitoring, among others.
According to the official, the mission is expected to focus on frontier technologies as well as micro, small and medium enterprises (MSMEs) to boost India's share in global manufacturing and help the country become part of the international value chain in the identified sectors. Policy interventions across identified sectors could include reducing regulations and cost of compliance, besides offering sops, to build world-class manufacturing infrastructure, according to people in the know. Five-year and 10-year targets will be set for these sectors keeping in mind the domestic and global demand, and regular monitoring of these targets will be done at the highest level, they said.
The government envisions manufacturing to account for 25% or $7.5 trillion by 2047, when the Indian economy is expected to be $30 trillion.
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