DPIIT shares list of 24 key sectors with ministries for plan to boost manufacturing
The DPIIT has shared a list of 24 key sectors, including food processing, toys, furniture, agro chemicals, and textiles, with respective ministries, asking them to work on an action plan with a view to boost domestic manufacturing and make India a self-reliant country, an official said.
The other sectors include organic farming, iron, aluminium and copper, electronics, industrial machinery, furniture, leather and shoes, and auto parts.
"Each ministry has been sent those sectors to identify their response. What incentives they (sectors) need, what policy tweaking is required, they (respective ministries) should do that. We have given them a preliminary action plan and the ministries will work on that. Each ministry will bring its own policy on these sectors," the commerce and industry ministry official said.
The government wants to make India a self-reliant country in these segments, boost exports, and become a global supplier.
The Department for Promotion of Industry and Internal Trade (DPIIT) is working actively on promoting domestic manufacturing of toys and furniture.
"Several meetings were held with stakeholders to identify these sectors, which have the potential to become global winners and make India a strong manufacturing hub," the official added.
Promoting manufacturing would help create more jobs and push India's dwindling exports.
The manufacturing sector contributes about 15 percent to the country's economy and the government is aiming to increase it significantly.
The Index of Industrial Production (IIP) for April-July contracted by 29.2 percent. The manufacturing sector constitutes about 78 percent of the IIP. Exports too contracted by 26.65 percent to $97.66 billion during April-August this fiscal.
Earlier this month, DPIIT was working on two schemes -- credit guarantee and seed funds -- to support startups in the country
DPIIT Secretary Guruprasad Mohapatra said an inter-ministerial consultation process was on to work out the contours of the two schemes.
He said there would be a corpus in the credit guarantee scheme, which would be given to banks and they would leverage that to lend to startups. This scheme would give banks a comfort to lend, he said, adding that this was for credit, not venture capital.
Edited by Teja Lele Desai