INDIA BUSINESS WORLD - JANUARY 1^st - JANUARY 15^th - 2008

HIGH POWERED GROUP TO RECOMMEND MEASURES FOR GROWTH OF MANUFACTURING SECTOR

The Prime Minister has constituted a High Powered Group under the Chairmanship of Dr. V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council (NMCC) for suggesting various measures to ensure the continuing growth of the manufacturing sector in the country which of late is showing signs of deceleration. The Secretaries to the Government Finance, Revenue, Commerce, Textiles and Industrial Policy & Promotion as well as the Member Secretary of the NMCC are the other Members of the Committee.

The following are the terms of reference of the Group:

a) to suggest policy measures and a continuing mechanism to ensure sustained growth of the Indian manufacturing industries for the next 10-15 years;

b) to suggest policy measures and immediate steps to reverse the recent deceleration in the growth of the manufacturing industries;

c) to suggest policy measures and immediate steps to boost exports of Indian manufactured goods in the face of appreciation of the rupee and high interest rates, particularly with respect to labour intensive sectors like textiles, leather and handicrafts;

d) to suggest policy measures to leverage FDI to modernize manufacturing in India and create a strong technological base.

The Group is required to submit its report and final recommendations within 3 months. The Group would be making interim recommendations which require early action. The first meeting of the Group has been scheduled by the Chairman, NMCC on 11th January.

The Group will look into various issues and suggest Policy measures and recommendations focusing on steps to boost export of Indian manufacturing goods in the present scenario of appreciating rupee and high domestic interest rate affecting very adversely the exports of some of our most labour intensive manufacturing sectors like Textiles, Leather, Handicrafts etc. The Group will also analyse and recommend various Policy measures to leverage Foreign Direct Investment to modernize manufacturing in India to help in creating a strong technological base that will provide the required momentum to sustain the growth of the Indian manufacturing industries over the next 10 to 15 years.