India’s manufacturing sector needs to grow and contribute more toward the economy. In order to facilitate this growth, the Indian government has proposed a National Manufacturing Policy (NMP). Arun Maira, Member, Planning Commission, presents his views on the government’s new policy.
Over the years, various policy initiatives and economic reforms have made India one of the fastest growing economies in the world. However, the performance of India’s manufacturing sector causes concern particularly when compared with the manufacturing sectors of other countries in similar stages of development. The increasing gap in both, the sectoral share of manufacturing and the productivity of the manufacturing sector in India, compared with such countries, including China, indicates that the country has not been able to fully leverage the opportunities provided by the dynamics of globalisation.