India will achieve the modest export target of $ 325 billion for the current fiscal but to enhance it substantially, the country needs to boost its manufacturing capability, Commerce and Industry Minister Anand Sharma said.
“India has to grow in manufacturing led exports because we are not a country very much endowed when it comes to some of the natural resources which need for our economic growth particularly energy. Therefore, India has to become competitive in manufacturing and exports,” Mr. Sharma told PTI in an interview.
The manufacturing sector declined by 2 per cent in October as against a growth of 9.9 per cent in the corresponding period last year.
During the April-October period of 2013-14 fiscal, the sector’s output contracted 0.3 per cent compared to a growth of 1.1 per cent in same period last year.
The dip in the growth rate of the sector has also cast its shadow on the country’s exports which has slowed down to about 6 per cent in November.
During April—November, exports grew by 6.27 per cent to $ 204 billion while imports aggregated at $ 304 billion.
Trade deficit stands at $ 100 billion.
Mr. Sharma expressed confidence that India would achieve its exports target of $ 325 billion for the current fiscal.
He said the government has announced the national manufacturing policy (NMP) to boost the sector’s growth and increase its share in the country’s GDP to 25 per cent from the present 15-16 per cent in the next decade. It also aims creating 100 million new jobs by 2022.
It envisages facilitation by the government in infrastructure development and improvement of the business environment through rationalisation and simplification of the regulatory framework.
The NMP would be a key enabler for setting of National Manufacturing and Investment Zones (NMIZs), which are industrial townships, benchmarked to the best manufacturing hubs in the world.