National Manufacturing Policy

In 2011, the government announced a National Manufacturing Policy to bring about a quantitative and qualitative change with the following six objectives:

1. Increase manufacturing sector growth to 12-14% over the medium-term to make it the engine of growth for the economy. The 2 to 4% differential over the medium-term growth rate of the overall economy will enable manufacturing to contribute atleast 25% of the National GDP by 2022.
2. Increase the rate of job creation in manufacturing to create 100 million additional jobs by 2022.
3. Creation of appropriate skill sets among the rural migrant and urban poor to make growth inclusive.
4. Increase domestic value addition and technological ‘depth’ in manufacturing.
5. Enhance global competitiveness of Indian manufacturing through appropriate policy support.
6. Ensure sustainability of growth, particularly with regards to the environment including energy efficiency, optimal utilisation of natural resources and restoration of damaged/ degraded ecosystems.

Specific policy instruments have been conceptualised to achieve the objectives stated above. These instruments broadly cover the following areas:

1. Rationalisation and simplification of business regulations
2. Simple and expeditious exit mechanism for closure of sick units while protecting labour interests
3. Financial and institutional mechanisms for technology development, including green technologies
4. Industrial training and skill upgradation measures
5. Incentives for Small and Medium Enterprises (SMEs)
6. Special Focus Sectors
7. Leveraging infrastructure deficit and government procurement—including defence
8. Clustering and aggregation : National Investment and Manufacturing Zones (NIMZs)
9. Trade Policy