The proposed Industrial Policy by the Department of Industrial Policy and Promotion (DIPP) will have special provisions for manufacturing in the textile, leather sectors to boost growth as well as focus on a diffusion of overall export hubs across the Country which are currently getting concentrated in few States. It will also tie in existing Government initiatives and serve as a focal point for various industry wise policies.
Export-led growth
The policy is also expected to reaffirm the Government's belief in export-led growth and as a result will have an extensive impact on overall trade norms, with ease in trade and diffusion of export hubs among the Governments' top priorities. Earlier this year, the Economic Survey pointed out that the five States Maharashtra, Gujarat, Karnataka, Tamil Nadu and Telangana account for a whopping 70 per cent of India‘s exports. "The Center plans to stop this restriction of exports through incentives as well as channel digital technology to extend exports from rural and traditionally backward areas" a Commerce Department official said.
Commerce and Industry Minister Suresh Prabhu has reiterated multiple times that the policy will be forward-looking and take into account the current global realities.
The New Industrial Policy will absorb the 2011 national manufacturing policy and focus on technological issues of 'industry 4.0', apart from furthering the Government's push of the Digital India initiative.
It will also have a special focus for sectors such as apparel and footwear in which India maintains a manufacturing edge, albeit, one that is slipping. "Despite India being one of the largest exporters in both sectors, manufacturing jobs in Bangladesh, Indonesia and several African Countries are seeing an increase while in we are seeing a slowdown in growth. So, the policy will have special provisions to boost these sectors, " a senior DIPP official said.
The $36 billion textile export sector, the third largest foreign exchange earner for the Country after petroleum products and gems and jewellery, clocked only 0.75 per cent growth in 2017-18, after a contraction in the past two years.
Source:- Dailyshippingtimes.com
